Italy's TE Wind finalises deal to buy 90% in Magenta from Energy Lab

Dec 31, 2014 - Italy's TE Wind (BIT:TEW) said it completed on Tuesday the acquisition of 90% in wind farm operator Magenta Srl from renewable plant manufacturer Energy Lab (BIT:ELAB).

Magenta owns five wind farms of 195 kW capacity each in the southern Italian region Basilicata.

TE Wind and Energy Lab expect the wind farms to generate a total of EUR 800,000 (USD 972,220) in annual revenues once they start working at full capacity. The seller, which will remain owner of 10% in Magenta, will complete the construction and will maintain the plants, TE Wind said in a statement.

The purchase agreement also envisages a call option for TE Wind to buy the remaining 10% in Magenta by December 15, 2016.

The price for the acquisition of the 90% stake was set at EUR 19,800, assuming the five plants are worth EUR 4.3 million under the current feed-in tariffs, the buyer added. The price may be adjusted according to the tariff Magenta will be entitled to receive, TE Wind said.

(EUR 1 = USD 1.215)

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