BayWa to Sell 49% Stake in Renewable Subsidiary to Energy Infrastructure Partners

The deal has been sealed at €530 million

December 14, 2020


BayWa AG has concluded its investor search for the planned capital increase at BayWa r.e. renewable energy GmbH (BayWa r.e.), a renewable project developer.

BayWa r.e will receive an equity contribution of €530 million (~$641 million) to acquire a 49% stake by Energy Infrastructure Partners (EIP), formerly Credit Suisse Energy Infrastructure Partners. EIP specializes in long-term investments in the energy sector.

With a stake of 51%, BayWa AG will remain BayWa r.e.’s majority shareholder. The execution of the capital increase is still subject to the usual regulatory approvals.

As part of the capital increase, the share capital of BayWa r.e. will be increased accordingly through new shares. Only the investor is permitted to subscribe to the new shares. BayWa r.e. will continue to be fully consolidated within the group.

Upon entry of the capital increase, BayWa r.e. GmbH will be converted into an Aktiengesellschaft or stock corporation under German law. The CEO of the newly formed BayWa r.e. AG will be Matthias Taft, the member of the BayWa AG Board of Management currently in charge of the energy segment.

According to Klaus Josef Lutz, chief executive officer (CEO) of BayWa AG, “The capital increase at BayWa r.e. is the largest transaction in BayWa company history. Together with our Green Bond successfully placed in 2019, we have acquired €1.03 billion (~$1.24 billion) in less than two years on the capital market for the renewable energies business unit.”

Lutz further added, “This is testament to the fact that our decision 11 years ago was the right one. In just a decade, BayWa r.e. has developed into one of the leading companies in the fields of renewable energies – and one that the market values at more than €1 billion.”

Roland Dörig, co-founder and managing partner of EIP, says: “We look forward to working with BayWa r.e. and being able to offer our institutional investors access to a one-of-a-kind international platform in the fields of renewable energies that is making an important contribution to the energy transition.”

“In EIP, we have found the right partner for continuing this success story. Together we have agreed to continue strengthening BayWa r.e.’s project, service, and solutions business going forward while transforming the company into an independent power producer (IPP),” Lutz adds.

BayWa r.e. will independently operate selected solar parks and wind farms with a total output of up to 3 GW in the medium term. “In doing so, we are broadening BayWa r.e.’s portfolio even further than before and increasing the predictability of earnings growth.”

BayWa r.e. has a project pipeline of over 13 GW, primarily in Europe, the U.S., and the Asia-Pacific region.

In September this year, BayWa r.e. had acquired Enable Energy Inc. Enable Energy is a U.S.-based commercial and industrial solar and energy storage solutions provider.

Previously, BayWa r.e. also sold its Tordesillas solar project in central Spain to Commerz Real, a German investment company. The 41.7 MW solar project is the first solar investment for Commerz Real’s new impact fund Klimavest.


Image credit: BayWa r.e

Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.