Engie buys out renewable power JV

French energy giant Engie (EPA:ENGI) has agreed to fully acquire Montpellier-based wind and solar power developer La Compagnie du Vent by taking over the 41% stake of partner Soper.

Financial details of the deal were not disclosed. However, Engie has earlier noted in its 2016 registration report that it had EUR 200 million in financial liabilities at December 31, 2016, mainly corresponding to put options on non-controlling interests, "notably for 41.01% of the shares of La Compagnie du Vent".

The same report stated that "since 2011, Engie has been involved in a number of disputes with Jean-Michel Germa, founder of La Compagnie du Vent and Soper, the main one being the action brought by Soper on January 2013, seeking payment by Engie of about EUR 250 million in conpensation for alleged breach of the agreement and the shareholders'agreement signed in 2007". The dispute was to be heard by the Creteil Commercial Court in May/June 2017.

La Compagnie du Vent was set up in 1989. Engie entered its capital in November 2007, paying EUR 321 million (USD 342.8m) for the 50.1% stake Electrabel held in it.

La Compagnie du Vent closed 2016 with sales of EUR 64.7 million, down by 3.3% year-on-year due to unfavourable weather conditions. Consolidated net profit came in at EUR 33.3 million, up from 10.4 million in 2015, thanks to income from sale of assets. In 2016, the developer invested more than EUR 88 million in the development and construction of new onshore wind farms and ground mounted PV power installations.

At present, the company's 150 employees manage an operating capacity of 423 MW in wind power and 88 MWp in solar photovoltaic (PV) plants. Last year, these assets generated 815 000 MWh of electricity, equivalent to the annual consumption, including heating, of some 340,000 individuals.

(EUR 1 = USD 1.068)

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