GE places big bet on French wind co. Theolia

French wind developer Theolia is buying wind farms in Germany owned by GE Energy Financial Services, the energy investing unit of GE (NYSE: GE).

In an assets-for-equity swap, Theolia is to acquire GE Energy Financial Services’ four Germany facilities, which have a total power generation capacity of 165 megawatts. In return, GE Energy Financial Services will receive 5,250,000 new shares of Theolia.

In addition, GE Energy Financial Services will invest an additional €20 million for an additional 1,212,000 new shares and will also be granted warrants to acquire 3,000,000 additional Theolia shares.

GE Energy Financial Services will have the opportunity to increase its ownership in Theolia up to 22 percent of the company’s share capital on a fully diluted basis.

Through this transaction, Theolia materially strengthens its operating position in the German market and gives its subsidiary Natenco in Germany additional growth potential, Theolia said in a statement.

GE Energy Financial Services has wind parks in Alsleben, Krusemark, Grossvargula and Zabelsdorf in Germany. Combined, they produce enough power to provide for the needs of 70,000 homes.

Theolia was advised by Société Générale on the transaction. GE Energy Financial Services was advised by Rothschild.

Through the acquisition of GE Energy Financial Services’ wind farms in Germany, Theolia significantly increases its installed capacity from 78MW to 243MW.

Theolia is listed on Euronext Paris as TEO. Its shares have nearly doubled since the beginning of the year.