SOWITEC group GmbH (“SOWITEC“) and Vestas Wind System A/S (“Vestas“) Agree on Minority Stake by Vestas of 25.1% with an Option to Acquire the Remaining Shares within the next Three Years
Sonnenbühl, 11. April 2019 - SOWITEC, one of the leading developers of renewable energy projects in the wind and solar sectors, is pleased to announce that it has entered, together with its sole shareholder Frank Hummel, into an agreement with Vestas about a participation of Vestas, a global partner in sustainable energy solutions that designs, manufactures, installs, and services wind turbines across the globe, in the amount of 25.1% of the share capital. As part of the agreement, Vestas will have the option to purchase the remaining stake in SOWITEC within three years from the closing of this transaction.
Active in the renewable energy industry since its inception in 1993, SOWITEC has developed over 60 wind and solar projects internationally, for a combined capacity of more than 2,600 MW that are already in operation or under construction. SOWITEC is one of the world’s largest renewable energy developer. Additionally, in partnership with global leading technology companies, SOWITEC is currently engaged in the development of innovative renewable energy solutions, such as floating solar PV, energy storage, green hydrogen production, and others
Upon regulatory approval, SOWITEC will support Vestas’ co-development strategy and increase Vestas’ capabilities to partner with its customers in co-development in selective markets. As the cheapest source of electricity in several parts of the world, wind energy has taken a key role in our planet’s energy transition and meeting its growing energy needs, which is unlocking growth opportunities in new markets and customer segments for Vestas. To grasp these opportunities, Vestas continues to invest in technology and commercial capabilities beyond wind energy technology that enable Vestas to develop sustainable energy solutions to meet current and future market demand.
Frank Hummel, Chief Executive Officer, says, “We are proud to have Vestas as a strategic partner that further strengthen our equity and helps us to go further in the value chain. This, together with our already strong track record in emerging markets and our vast experience in developing utility-scale renewable energy projects, will help SOWITEC to grow faster and will give us the chance to profit from Vestas’ worldwide experience”.
Juan Araluce, Vestas’ Chief Sales Officer, says, “With the acquisition of a minority stake in SOWITEC, Vestas gains access to an independent development entity that strengthens our co-development portfolio and builds our co-development capabilities in strategic markets in Latin America. By doing so, we thus continue to invest in solutions and capabilities that increase our ability to meet our customers’ evolving needs and to partner with them through the energy transition.”
For 2018, SOWITEC is expected to report consolidated revenues of approximately EUR 30 million on a stand-alone basis. The investment, which is subject to regulatory approval, is expected to be finalized during the second quarter of 2019 and has no significant impact on Vestas or SOWITEC earnings.
Greentech Capital Advisors acted as exclusive financial advisor, and “RWT-Gruppe” as legal advisor to SOWITEC.
About SOWITEC
As one of the leading global project developers for renewable energies, SOWITEC is active in 14 countries with a focus on the rapidly growing emerging and developing countries. With almost 200 employees, SOWITEC covers all areas of solar and wind power project development: from planning and conception, energy and profitability calculations, through construction management, sales and financing to the technical and commercial management of wind and solar parks. Almost 60 wind and solar projects with over 2,600 MW developed by SOWITEC are currently in operation or under construction in eight countries.
About Vestas
Vestas is the energy industry’s global partner on sustainable energy solutions. We design, manufacture, install, and service wind turbines across the globe, and with more than 101 GW of wind turbines in 80 countries, we have installed more wind power than anyone else. Through our industry-leading smart data capabilities and unparalleled more than 86 GW of wind turbines under service, we use data to interpret, forecast, and exploit wind resources and deliver best-in-class wind power solutions. Together with our customers, Vestas’ more than 24,600 employees are bringing the world sustainable energy solutions to power a bright future.
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