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published JANUARY 21, 2010

Watson, Farley & Williams advises DONG Energy and Siemens on their equity stake investment in Lincs Offshore Wind Farm

Watson, Farley & Williams, a leading international law firm, has advised DONG Energy and Siemens Project Ventures (“SPV”) on their acquisition of a 50% equity stake in the 270 megawatt (MW) Lincs offshore wind farm project from Centrica PLC. The acquisition is being made through a newly incorporated joint venture company, owned in equal shares by DONG Energy and SPV. As part of the acquisition, Watson, Farley & Williams advised DONG Energy and SPV on related joint venture, wind turbine supply, project servicing, financing and power off-take arrangements. The Lincs project is expected to involve a total investment of approximately £750 million, with DONG Energy and SPV having a combined 50% share of the investment of approximately £375 million. The project is currently in the final design and procurement phase. Construction of the project is expected to commence in 2010, with commissioning scheduled for 2012. This transaction follows further expansion of the relationship between Siemens and DONG Energy in offshore wind farm projects. In March 2009, DONG Energy and the Siemens Energy Sector entered into an agreement for the supply of up to 500 offshore wind turbines with a total capacity of up to 1,800 MW. The supply agreement was the world’s largest agreement of its kind and the parties took a big step towards the industrialisation of the offshore wind segment. A Watson, Farley & Williams team led by partner Evan Stergoulis (Head of the Project and Structured Finance Group) advised DONG Energy and Siemens Project Ventures with their joint investment in the Lincs wind farm project. The team also included partners Nicholas Fothergill (International Corporate Group), Martin Lucas (Project and Structured Finance Group), Richard Goodman (Project and Structured Finance Group), Michael L’Estrange (International Tax Group), and Gary Ritter (Property Group). Assistants Sarah Coates, Neil Budd, Simon Alsey, Joe Hesketh, Jim Jordan, Rebecca Conan, and Clare Carpenter, provided further advice on the transaction. Assistant Christine Bader from the Watson, Farley & Williams Hamburg office additionally advised in relation to the competition law-related aspects of the transaction. Evan Stergoulis, Head of the Project and Structured Finance Group of Watson, Farley & Williams comments: “We are pleased to have been able to assist DONG Energy and Siemens Project Ventures with their joint investment in the Lincs wind farm, a project that will benefit from the latest offshore wind turbine technology. This transaction was closed in December on the same day we closed on the sale of DONG Energy’s minority stake in Walney Offshore Wind Farm, demonstrating the depth and breadth of our expertise in large, complex transactions.”