EnBW selected by the PROKON creditors’ committee as the preferred investor for the investor model

EnBW Windkraft Beteiligungsgesellschaft mbH, a wholly owned subsidiary of EnBW Energie Baden-Württemberg AG, issued a binding offer to acquire all shares in PROKON Regenerative Energien GmbH (“PROKON”) as part of a bidding process and was selected today by the PROKON creditors’ committee as the preferred investor for the investor model. The purchase price offered comprises a mid three-digit million euro sum in the form of a cash payment. The final decision on the offer made by EnBW is expected to be made by the PROKON creditors’ meeting at the beginning of July 2015. EnBW has thus overcome an important hurdle in a multi-stage process for the acquisition of PROKON from insolvency.

The acquisition of PROKON would represent a major step for EnBW in terms of its strategic goals for expansion in the area of renewable energies and would thus significantly accelerate its growth in this area. PROKON currently operates 54 wind farms in Germany and Poland with an installed output of 537 MW and also has a project pipeline consisting of more than 170 wind farm projects in Germany, Poland and Finland with potential output of 4,200 MW.

Following today’s decision by the PROKON creditors’ committee, the binding offer from EnBW will be presented as one of two recapitalisation options to the PROKON creditors’ meeting due to be held to discuss and vote on the options at the beginning of July 2015. The PROKON creditors’ meeting will then decide whether PROKON will continue as a cooperative together with the current profit participation rights holders or whether the recapitalisation will take place through the acquisition of 100% of the shares by EnBW. Both the PROKON creditors’ committee and also the insolvency administrator have expressed support for a recapitalisation as part of the insolvency plan, but believe that the decision between the two recapitalisation options lies solely with the creditors’ meeting and have thus not issued any recommendation in this respect. However, if the PROKON creditors’ meeting does not decide on either of the proposed recapitalisation options, PROKON will be placed into the standard liquidation process and then liquidated by the insolvency administrator.