PNE admits deal clause concern over Gode Wind 3 sale

In 2012, Dong agreed to buy Gode Wind 1, 2 and 3 from PNE for an upfront sum of EUR 57 million, with additional deferred payments of EUR 100 million dependent on certain milestones being hit.

PNE said that the deal included a clause that allowed Dong to pull out of the acquisition if a construction permit for the project was not granted by 31 January 2014. And since the permit is yet to be secured, PNE said in its prospectus for an upcoming share listing that Dong could take up this option.

If this were to happen PNE would have to shoulder the costs of reversing the transaction. The prospectus went on to warn that it is possible that an alternative investor could not be found, or that PNE would have to accept a deal substantially lower than that offered by Dong.

Gode Wind 1 and 2 have both already been granted permits, and the sales have been finalised.