German agricultural and industrial conglomerate Baywa AG has successfully completed its search for investors for the planned capital increase of its renewables energy unit, Baywa re.
The company said, in a press release, it received an equity contribution of $640 million from unspecified funds advised by U.S.-based Energy Infrastructure Partners (EIP). This sum was enough to ensure a 49% stake in the company for the new investors. Baywa AG will remain the majority shareholder, with 51%. EIP, formerly Credit Suisse Energy Infrastructure Partners, specializes in long-term investments in the energy sector.
This deal is the largest transaction in Baywa’s corporate history. Together with the green bond placed in 2019, the group has acquired $1.25 billion on the capital market for the renewable energies business area in just under two years.
The operation will be made as a capital increase through the issuance of new shares. After completion, Baywa re GmbH will be converted into a stock corporation. Its CEO will be Matthias Taft, who is currently still responsible for the energy segment at Baywa AG. The implementation of the capital increase is still subject to the usual regulatory approvals.
Baywa AG and EIP have agreed to strengthen Baywa re’s project, service and solution business and at the same time develop the company into an independent power producer (IPP). Baywa re is to operate selected solar and wind power plants itself, with a total volume of up to 3 GW in the medium term.
“In just one decade, Baywa re developed into one of the leading companies in the field of renewable energies which is now valued at more than $1 billion on the market,” said Klaus Josef Lutz, CEO of Baywa AG. “The Baywa re success story also reflects the result of Baywa’s internationalization.”
“We look forward to working with Baywa re and being able to offer our institutional investors access to this unique international platform in the field of renewable energies which makes an important contribution to the energy transition,” said Roland Dörig, co-founder and managing partner of EIP.
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