Swiss investment firm Energy Infrastructure Partners (EIP) plans to raise its stake in the renewables unit of German group BayWa AG to 80%. A formal bid is anticipated as early as next week, according to Bloomberg, citing an insider.
As part of this transaction, EIP will refinance BayWa r.e.'s nearly EUR 600 million (USD 655.9 million) debt, inviting existing lenders to participate in the process.
EIP is also set to inject EUR 200 million in new funds into the business. This proposal aims to ensure that creditors of BayWa r.e. are fully repaid immediately upon completion.
BayWa AG will retain an interest in its renewables division through tradeable debt instruments tied to future earnings from BayWa r.e.'s Solar Trade unit and other profits.
EIP initially acquired a 49% stake in BayWa r.e. in 2021, contributing a total of EUR 530 million in equity.
The financially burdened BayWa is currently developing a restructuring plan expected to be finalized in December. The renewables unit under EIP's consideration has recently faced declining financial performance, reporting a loss of EUR 274.3 million in the first half of 2024, which included EUR 171.5 million in impairments. This downturn has been attributed to decreasing prices for solar modules and inverters, leading to negative trading margins and inventory write-downs.
See Also
- BayWa r.e. AG Restructures Focus on Renewable Energy Development Amid Market Challenges
- Velux Group Procures Renewable Power from Innovative Agri-Solar Park in Spain
- Sustainability Roundtable Secures Buyers for Renewable Energy Credits from Prairie Solar Project
- Statkraft Secures PPA for Solar and Storage Project in UK’s East Riding
- Oversight of Solar PV Project Maintenance Lags in Development, Industry Players Address Challenges
