Sale of Gamesa Wind Farm Assets Halted

June 02, 2002 by Jeff Shepard

Plans by wind power firm Gamesa (Madrid, Spain) to sell wind park assets has been halted by key shareholder Iberdrola (Spain) after an announcement that the sale had not been approved by the board. Gamesa was forced to confirm a report that it was receiving offers for the sale of 1,000MW of assets in Spain, Italy and Portugal by 2006 as part of a plan to reduce debt and finance expansion. Additionally, Gamesa had also announced a venture with US firm Navitas, to develop wind parks in the US in which it would have a controlling 75-percent stake.

"The plan does not have the backing of management or shareholders, it is not approved by the board...the project is not authorized," a spokesman for Iberdrola stated. "The board has not approved the Navitas joint venture either."