Energy Infrastructure Partners (EIP) is to become the new majority shareholder of BayWa r.e. after signing a deal to increase its stake in the company to 65%.
As part of a capital increase, EIP will invest €150m in new capital in the Munich-based BayWa r.e.
This will raise EIP’s stake from 49% to 65% as it assumes the role of majority shareholder.
The previous majority shareholder BayWa AG will retain a 35% stake.
The new capital comes in addition to ongoing financial support from EIP and a reinforced and enlarged capital structure, including support from BayWa r.e.’s flagship lenders and selected EIP relationship banks.
The completion of the transaction is subject to customary regulatory approvals.
EIP acquired 49% of BayWa r.e.’s share capital in 2021. Since then, BayWa r.e.’s portfolio of wind and solar operating largely focused in the European and North American markets has grown more than 50% by installed capacity.
The company’s project pipeline has more than doubled.
BayWa r.e. will place an increased focus on its portfolio of renewable energy assets, which operate as an independent power producer unit (IPP), generating carbon-free electricity, as well as its business developing wind, solar and energy storage projects.
EIP managing partner Roland Dörig said: “Few companies have the potential of BayWa r.e. to take a leading role in developing renewable energy projects across major economies worldwide.
“We are convinced of the enormous potential of this company, its expert workforce and its unique position to drive the energy transition.
“We have decided to take on the role of majority shareholder to contribute our expertise in the energy sector and financial strength to support BayWa r.e. in unlocking its full potential.”
EIP partner Tim Marahrens added: “As a long-term investor, we want to ensure that BayWa r.e. and its employees can focus on what they do best, namely developing and operating renewable energy projects globally.
“We also understand that alongside energy projects people are the most important asset at the firm, and we want to attract and retain the top talent.”
BayWa r.e. chief executive Matthias Taft welcomed the deal, saying it would bring more financial stability to the company and enable its further development in the renewable energy sector.
“With EIP as the majority shareholder, we have a financially strong and long-term partner by our side who knows BayWa r.e. very well and possesses extensive expertise in the energy market,” he added.