NZ Windfarms announces major acquisition

NZ Windfarms is adding the Te Rere Hau Wind Farm near Palmerston North to its portfolio of assets at a cost of $17.3 million.

It has entered into a sale and purchase agreement with Powerco, which it currently leases the farm from.

NZ Windfarms’ chairman Rodger Kerr-Newell says the acquisition is part of a plan to obtaining control of assets critical to the company’s operations.

“We have undertaken our own analysis and engaged third party advisers to ensure we are paying a fair price for the assets and we believe we are.

“The acquisition has other positive effects on the company such as providing control across both generation and transmission assets to the injection node. It will also improve the company’s free cash flow allowing that cash to be used for other purposes.”

The assets include around 20km of dual 33kV transmission circuits, on-farm reticulation cabling, a switchyard and 97 transformers (one per turbine).

The company has leased these assets since the later build stages of the wind farm in 2008.