German renewable energy company Senvion has announced that it has entered into a non-binding exclusivity agreement with Siemens Gamesa Renewable Energy (SGRE) to sell its European services and onshore assets for an undisclosed fee.
Hamburg-based Senvion filed for insolvency in April 2019 due to debts of more than €1bn. Senvion’s creditors agreed to the insolvency plans on 11 September.
The two companies will now enter the final stages of negotiations, with a final agreement expected to be made by the end of September.
Senvion CEO Yves Rannou said: “Today’s announcement means that we are close to finding a safe harbour for a significant part of the business and substantial parts of its employee base. In these difficult circumstances, these are positive news. Looking ahead to the weeks to come, the management team will continue to put all efforts behind finding the best solutions possible for the rest of the business.”
As a result of the news, Senvion’s share price dropped slightly to €0.088 a share. However, due to the company’s insolvency, its share price had already plummeted from a high of €2.28 a share in January 2019.
Senvion’s share price in 2019
Meanwhile, SGRE’s shares rose slightly from €13.67 to €13.72 a share, giving the company a current market capitalisation value of just over €9.3bn. The company’s shares have rebounded in recent months after a dramatic fall from €15.52 to €12.78 a share on 30 July after it published its financial results for October 2018 to June 2019.
Despite its insolvency, Senvion has continued to work on projects around the world. For example in May 2019 it provided the wind turbines for the 200MW Borkum II offshore windfarm in the German North Sea.
It currently employs over 4,000 people in Germany, whose jobs remain at risk.
Operating from Zamudio near Bilbao, Spain, Siemens Gamesa is the second largest onshore wind turbine installer in the world, with just under 5GW installed in 2018.
According to its latest financial results, the company’s revenue increased by 12% in the first nine months of its financial year to nearly €7.3bn, whilst its net income for the period also increased to €88m.