You (main character) have to be level 5 and visit the lower part of larswood. The location this happens at is a tower and you will be attacked by gibberlings near it before he appears.
Yeah I got BG EE Steam. It comes with all 3 EE characters as well as Baeloth. Steam does not have the new patch though, so you might wanna wait a few days before starting a new playthrough.
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