BioTech

Nordex shares jump on $474 mln project pipeline sale

Shares in wind turbine maker Nordex jumped 12.8% in pre-market trade on Monday after the group agreed to sell most of its project development pipeline to RWE for 402.5 million euros ($474 million).

Nordex sells 77% of project development pipeline

Price represents 43% of Nordex's market value

Shares up 10.3% in early trade

Adds context on pipeline size, deal value

FRANKFURT, Aug 3 (Reuters) - Shares in wind turbine maker Nordex NDXG.DE jumped 12.8% in pre-market trade on Monday after the group agreed to sell most of its project development pipeline to RWE RWEG.DE for 402.5 million euros ($474 million).

The 2.7 gigawatts of wind and solar projects are located in France, Spain, Sweden and Poland and represent nearly 80% of Nordex's total project development pipeline. The company was advised by Rothschild & Co on the deal.

At 43% of Nordex's current market valuation, the proceeds will be used to strengthen the group's balance sheet, Nordex Chief Executive Jose Luis Blanco said in a statement on Monday.

Nordex shares were up 10.3% in early Frankfurt trade NDXG.F.

The deal, agreed in principle on Friday, marks the first major renewables deal for RWE since the takeover of the wind and solar activities of former subsidiary Innogy and E.ON EONGn.DE.

"Looks like a win-win-deal: RWE profits adding strong capacity to its European core business. Nordex gets a huge, urgently needed cash inflow," said a trader, adding it might also fuel takeover speculation for Nordex.

Nordex, which is 36.41% owned by Spain's Acciona ANA.MC, is the world's seventh-largest wind turbine maker, where it competes with larger rivals Vestas VWS.CO, Siemens Gamesa SGREN.MC, General Electric GE.N and Goldwind 002202.SZ.

($1 = 0.8493 euros)

(Reporting by Christoph Steitz; Editing by Maria Sheahan and Louise Heavens)

((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; Reuters Messaging: christoph.steitz.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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