THEOLIA Emerging Markets signed on November 16th, in Casablanca, a strategic partnership contract with ecolutions KgaA, a German company specialised in the generation and the trading of CO² certificates (CERs).
A strategic partnership
ecolutions KGaA shareholders had decided to list their company on the German stock exchange in December 2007. THEOLIA Emerging Markets - who was already in negotiations with ecolutions in order to strengthen its activities in the emerging countries - has decided to subscribe to the whole capital increase. As a result, THEOLIA Emerging Markets receives 10 million new shares for 25 million euros. The number of shares therefore increases from 18,4 million to 28,4 million and THEOLIA thus owns 35% of ecolutions' shares. In addition, THEOLIA obtains two of the six seats of ecolutions' supervisory board.
Following the creation of this partnership, the parties have decided to defer the planned listing of ecolution on the German stock exchange from December 2007 to March 2008.
Who is ecolutions KGaA ?
ecolutions KGaA is one of the rare companies specialised in the trade of certificates of emission reduction - CERs or CO² certificates. Following the Kyoto Protocol, a number of mechanisms and incentive measures have been put in place on a global scale in order to facilitate investment in the emerging countries in climate protection projects that limit greenhouse gas emissions. Amongst them are CO² certificates.
ecolutions KGaA specialises in the following activities:
- CERs validation and development of climate protection projects
- Registration of the projects with competent authorities
- Market analysis and valuation of certificates
- Generation, trading and/or brokerage of certificates
With this partnership, ecolutions will concentrate on its core business and progressively spin-off its various participations.
Following the creation of this partnership, the future revenues of ecolutions will be three-fold:
- Investments in climate protection projects in order to generate certificates
- Validation and registration of climate protection projects
- Trading and brokerage of certificates
Ralf JUNGEBLOED, Managing Director of ecolutions KGaA: « THEOLIA Emerging Markets, a 100% subsidiary of THEOLIA SA, is one of the global leaders in electricity production from renewable energy sources in the emerging markets. Taking into consideration our complementarities, THEOLIA Emerging Markets is the ideal strategic partner for ecolutions. Our know-how in the generation and sale of carbon emission certificates will allow us to increase the profitability of THEOLIA Emerging Markets' projects. ecolutions will benefit from an exceptional sourcing thanks to projects developed by THEOLIA Emerging Markets. This strategic agreement will have a very positive impact on the turn over and profit of ecolutions and will be very positive for our planned listing on the German stock exchange in March 2008. »
Who is THEOLIA Emerging Markets (TEM)?
TEM is an electricity producer from renewable energy. Headquartered in Casablanca, this subsidiary of THEOLIA SA, is entirely dedicated to activities in the emerging countries and currently has activities in Morocco, India, Brazil and in Eastern European countries.
In most emerging countries, revenues from renewable energy projects result from the sale of electricity and from the sale of CO² certificates. The company plans listing on the stock exchange during first half 2008.
Jean-Marie SANTANDER, President and Chief Executive Officer of THEOLIA S.A. and of THEOLIA Emerging Markets : « We wanted to create a company fully dedicated to emerging countries which present un huge potential in electricity production from renewable energy sources. In these countries, the incentive measures and mechanisms are different from those put in place in Western Europe. We understand the increasing importance of the global certificate market and the importance hereof for our subsidiary THEOLIA Emerging Markets. Within the framework of its projects, THEOLIA Emerging Markets will produce CO² certificates that will exclusively be sold by ecolutions. This strategic partnership will allow us to improve the returns of our projects whilst reinforcing the profitability of our new partner ecolutions. »
THEOLIA Emerging Markets and ecolutions KGaA were brought together through SILVIA QUANDT BANK, a subsidiary of biw Bank für Investment und Wertpapiere AG
SILVIA QUANDT BANK is a German investment bank specialised in particular in small and mid size companies. This strategic partnership is the result of the excellent relationships between the bank, THEOLIA and ecolutions.
Christian VON DREISING Corporate Finance Director of SILVIA QUANDT BANK: « We have been charged with the listing the ecolutions KGaA Company on the German stock exchange. From the start of our mission we have looked in the preliminary phase called pre-marketing for strategic investors for ecolutions KGaA. Investor's interest for ecolutions KgaA has been exceptionally high. The strategic partnership between THEOLIA Emerging Markets and ecolutions will be a source of exceptional value creation for the two companies. Consequently we are pursuing a dual solution and have finally decided to defer the listing of ecolutions KGaA on the stock exchange. »
THEOLIA is a leading European independent electricity producer from renewable energy. THEOLIA's activity spans development, construction and operation of wind farms. THEOLIA operates in Europe and a number of emerging markets. THEOLIA is listed on Eurolist B by Euronext Paris under the mnemonic TEO. The stock is a component of the SBF 120 index since September 24th, 2007.
ecolutions invests in climate protection projects in emerging countries for the purpose of generating revenue from the operations of the facilities as well as from the later sale of the emission certificates granted to the projects. ecolutions offers the complete value chain, from the registration till the final sale of the CO² certificates. The company invests in projects world-wide, on its own or with co-investors, that result in a decrease of CO2 emissions or that absorb CO² and consequently generate emission certificates, in particular in Clean Development Mechanism projects (CDM projects) and Joint Implementation projects (JI projects).
For further information:
Director of Communications
Tel: +33 (0)4 42 904 904
THEOLIA Emerging Markets
Executive Vice President
Tél: + 212 - 22 47 61 17
ecolutions GmbH & Co. KGaA
Chief Executive Officer
Tel. +49 (0) 69 9150 108 10
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