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NTR has announced the sale of wind energy company, Airtricity,
to UK utility - Scottish and Southern Energy (SSE) - in an
equity deal worth €1.83 billion.
The deal, in which Scottish and Southern will also take over
€375 million of debt, will probably be completed in the
first quarter, according to the company.
The purchase price includes €746.5 million that reflects
money to be received for the recently agreed sale of Airtricity's
North American assets (Click
Here). Airtricity sold its North American operations
to Germany's E.ON AG in October.
NTR, Ecofin and other shareholders representing in excess
of 80pc of the voting shares of Airtricity have approved and
committed themselves to the transaction, the statement said.
Airtricity boss, Eddie O'Connor is set to earn €45m
from the sale of the Irish wind energy group he founded less
than a decade ago. It is reported that Mr O'Connor had actually
mounted a management buyout bid during the auction, but was
pipped at the post by the Scots.
He founded the company in 1999, a few years after he stepped
down as managing director of Bord na Mona. Starting off with
about 18 turbines in Co Donegal, Airtricity has gone on to
become a global player in renewable energy with assets stretching
as far as Asia.
"The sale of Airtricity to Scottish and Southern Energy
is a very important milestone for both Airtricity and its
shareholders" - said Jim Barry, chairman of Airtricity
and chief executive of NTR. "However, the future of the
European business was mainly in offshore wind farms, which
are more risky than onshore projects and need a seriously
large balance sheet" - he added.
Mr Barry estimated that Airtricity - which has received €450m
in investments, since it was founded in 1999 - would need
to raise a further €1bn-€2bn over the next three
to four years to fund medium-term projects.
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