BW Ideol is in exclusive negotiations with state-owned French financier ADEME Investissement for €40m funding to support the floating wind developer projects.
The agreement would see the creation of a subsidiary for all BW Ideol’s co-development activities (DevCo).
There would be an initial investment of €16.7m by ADEME Investissement with further capital injections for a total of €23.3m based on project funding calls for each of ADEME Investissement and BW Ideol.
There would also be a €72m post-money valuation of DevCo, with 76.6% of its shares held by BW Ideol and 23.4% ownership by ADEME Investissement.
Finally, there will be an annual service agreement paid to BW Ideol to cover DevCo’s management costs
Under the agreement, BW Ideol will be responsible for DevCo’s management through a service agreement.
When all funding calls are completed, each of ADEME Investissement and BW Ideol will have invested € 40m each in DevCo.
ADEME Investissement has been granted a two-month period of exclusivity for the transaction, with a target to complete First Closing by end of Q2-2023, subject to final negotiations and approval by the respective decision bodies of BW Ideol and ADEME Investissement.
BW Ideol will retain full ownership of its other business activities and assets.
Paul de la Guérivière, chief executive of BW Ideol, said: “In addition to the agreement with ADEME Investissement, we have signed today a €12m shareholder loan with BW Offshore and Noria.
“With these two transactions, we expect to be fully funded to execute our business plan for the next 12 months, with no dilution on existing shareholders.”