Globeleq acquires 70% of Central American Renewable Energy Business

LONDON, 19 January, 2010: Globeleq Generation Limited, the emerging markets power company, announced the acquisition of a majority interest in Energias Renovables de Mesoamerica S.A. (ERM or Mesoamerica Energy), the owner, operator and leading developer of wind projects in Central America. 

ERM owns and operates a 23MW wind energy plant in Tilarán, Costa Rica and is developing in Honduras, the Cerro de Hula wind energy project with a designed capacity of 100MW.  Additionally, ERM owns the rights of several potential renewable energy projects in the region.

“This is a very exciting acquisition for Globeleq.  Wind power provides a clean, reliable and affordable alternative source of electricity generation and is an integral part of our strategy”, said Mikael Karlsson, Globeleq’s CEO.  He added: “The addition of ERM’s expertise and portfolio to the company positions us for further opportunities to develop sustainable and renewable energy businesses, enabling us to bring essential power to Central America and beyond.”  

Globeleq will acquire a 70% controlling interest in ERM from prominent business groups in Central America, represented by Mesoamerica - the region’s foremost M&A advisory, strategic consulting and private equity firm.  The remaining interest in ERM will continue to be held by the current shareholders.  Luis Javier Castro, Managing Partner of Mesoamerica commented: “With Globeleq, we look forward to a partnership that will allow us to continue with our vision of bringing about competitive, clean energy in a transparent, socially responsible manner.”

Jay Gallegos, CEO of ERM added: "Being part of an experienced international operating company like Globeleq provides a great opportunity for all of us.  Globeleq, Mesoamerica and ERM are combining investment, expertise and resources to bring clean, reliable and affordable renewable technologies to the region.  This combination creates a platform for building a leading renewable energy business in Central America.  Together we look forward to bringing the Cerro de Hula project in Honduras and other projects in our development pipeline to fruition.”

About Globeleq Generation Limited

Globeleq is an experienced operating power company, actively developing energy solutions for the emerging markets of Africa, the Americas and Asia. The company develops economically sustainable projects that support the continued development of the electric power sector in these regions. For more information go to www.globeleq.com

 About ERM

ERM is a company dedicated to the development, construction and operation of renewable energy projects in Central America and adjacent regions.  For more information go to www.mesoamericaenergy.com

 About Mesoamerica

Mesoamerica, founded in 1996, is the leading M&A advisory, strategy consulting and private equity group in Central America.  The firm has offices in San José, Costa Rica, and Bogotá, Colombia, from where they provide services to the Central America and Andean regions.  For more information go to www.mesoamerica.com

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