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Nordex Shares Jump on $474 Million Project Pipeline Sale

FRANKFURT (Reuters) - Shares in wind turbine maker Nordex jumped 12.8% in pre-market trade on Monday after the group agreed to sell most of its project development pipeline to RWE for 402.5 million euros ($474 million).

The 2.7 gigawatts of wind and solar projects are located in France, Spain, Sweden and Poland and represent nearly 80% of Nordex’s total project development pipeline. The company was advised by Rothschild & Co on the deal.

At 43% of Nordex’s current market valuation, the proceeds will be used to strengthen the group’s balance sheet, Nordex Chief Executive Jose Luis Blanco said in a statement on Monday.

Nordex shares were up 10.3% in early Frankfurt trade.

The deal, agreed in principle on Friday, marks the first major renewables deal for RWE since the takeover of the wind and solar activities of former subsidiary Innogy and E.ON.

“Looks like a win-win-deal: RWE profits adding strong capacity to its European core business. Nordex gets a huge, urgently needed cash inflow,” said a trader, adding it might also fuel takeover speculation for Nordex.

Nordex, which is 36.41% owned by Spain’s Acciona, is the world’s seventh-largest wind turbine maker, where it competes with larger rivals Vestas, Siemens Gamesa, General Electric and Goldwind.

Reporting by Christoph Steitz; Editing by Maria Sheahan and Louise Heavens

Source: Reuters

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