Floating wind farm and technology developer BW Ideol has entered into exclusive negotiations with ADEME Investissement, a state-owned French financier of innovative infrastructure projects, for ADEME Investissement to invest €40 million in BW Ideol’s project development activities.
Under the agreed terms, BW Ideol will transfer its co-development project portfolio to a newly created subsidiary DevCo, subject to the approval of project partners and tendering authorities.
ADEME Investissement will invest € 40 million in equity into DevCo through capital increases, with an initial € 16.7 million paid at First Closing, and subsequent capital injections based on project funding calls with a co-financing at equal share between BW Ideol and ADEME Investissement.
Following First Closing, BW Ideol will own 76.6% of DevCo, representing a post-money valuation of DevCo of around € 72 million.
ADEME Investissement is set to increase its holding over time as further projects are matured and financed.
Under the agreement, BW Ideol will be responsible for DevCo’s management through a service agreement. When all funding calls are completed, each of ADEME Investissement and BW Ideol will have invested € 40 million each in DevCo.
ADEME Investissement has been granted a two-month period of exclusivity for the transaction, with a target to complete the First Closing by the end of Q2-2023, subject to final negotiations and approval by the respective decision bodies of BW Ideol and ADEME Investissement.
BW Ideol will retain full ownership of its other business activities and assets, including its technology and related IP and know-how portfolio, its floater EPCI business line and the exclusivity with the Port of Ardersier in Scotland for a floater production line, the Floatgen demonstrator, the ownership in the EolMed project, all the teams, including engineering, business development, project execution, supply chain, legal, innovation, finance.
“In addition to the agreement with ADEME Investissement, we have signed today a € 12 million shareholder loan with BW Offshore and Noria. With these two transactions, we expect to be fully funded to execute our business plan for the next 12 months, with no dilution on existing shareholders” said Paul de la Guérivière.