Vestas has reached an agreement to sell two wind farms in Romania and Bulgaria in a deal worth €127m ($168m).
The Danish group will sell the 70MW Gebeleisis plant in Romania and Bulgaria’s 14MW Hrabrovo wind farm to Lukerg Renew – a joint venture between Italy’s ERG Renew and Russian oil giant Lukoil.
The wind equipment group said it decided to sell the plants as “development and ownership of projects is not part of Vestas’ regular business model”. Vestas said “among other things” it became involved in their development to boost its green-power share.
Gebeleisis is located in the Galati region in Romania and has been fully operational since February this year, using 35 V90-2.0 MW turbines.
Hrabrovo is in the Dobrich region of Bulgaria That sale is subject to approval by Bulgarian regulators.
Vestas expects to close the transactions within eight weeks.
In a statement it noted that its free cash flow is expected to be “positively impacted” by €127m in the second and third quarters of the year.
The company has stressed the need to improve its free cash flow position as part of its corporate and financial turnaround strategy.