Shearman & Sterling is advising Borealis Infrastructure (Borealis) in its acquisition of a 49% equity shareholding in a portfolio of wind farm assets in the US from EDP Renováveis S.A. (EDPR). The portfolio is comprised of four wind farms totalling 599 MW, installed between 2007 and 2008 (4.5 years of average age), and all of which have long-term Power Purchase Agreements (PPAs) in place. The total consideration for the 49% equity shareholding is US$230 million, which represents a total implied value for the portfolio of US$1,446 million. The transaction is subject to customary regulatory approvals.
Borealis invests in and manages infrastructure investments on behalf of the Ontario Municipal Employees Retirement System (OMERS), one of Canada’s largest pension funds.
EDP Renováveis S.A. is a world leader in the renewable energy sector, currently the European and world’s third largest wind energy company. The EDP Group is EDP Renováveis’s major shareholder. The EDP Group is Portugal’s largest industrial group and one of Europe’s main energy companies.
The Shearman & Sterling team included partner Robert Freedman (New York-Project Development & Finance), as well as M&A partner Stephen Besen (New York-Mergers & Acquisitions) and tax partners Don J. Lonczak (Washington, DC-Tax) and Mitchell Menaker (New York-Tax) and associates Benjamin Brod (New York-Mergers & Acquisitions), David Dubrovsky (New York-Project Development & Finance), Jeffrey Kalikow (New York-Project Development & Finance), Nicole Gragg (New York-Project Development & Finance) and Derek Kershaw (New York-Tax).
