Investment platform Energy Infrastructure Partners (EIP) has acquired a majority stake in German renewable energy company BayWa r.e.
The company has increased its shareholding from 49% to 65% through an agreed capital increase and will assume the role of majority shareholder in lieu of BayWa AG.
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As part of the capital increase, EIP will invest €150 million (US$157 million) of new capital into the company. This new financing comes in addition to ongoing financial support from EIP and a reinforced and enlarged capital structure.
EIP’s majority stake acquisition comes a few months after BayWa r.e. reached an agreement with its financiers on key aspects of a long-term financing solution, among which it extended credit and guarantee lines until December 2027. In the first half of 2024, the company’s renewable power division reported weaker financial results, including a year-on-year decline in revenue of €1.2 billion compared to the same period of 2023.
According to the company, the new ownership structure of BayWa r.e. will enable the German renewable power company to operate independently in the future, both strategically and financially. All existing credit and guarantee lines will remain in place until the end of 2028.
EIP said it will refocus BayWa r.e. on its core competencies, and as a global renewable energy developer. The company will be focusing on its “core markets”, although did not specify which ones, in order to increase its operational efficiency.
“With the strengthened capital base, we have the opportunity to reliably and consistently implement the initiated transformation. Our focus is on achieving sustainable financial stability and further developing BayWa r.e. as a leading player in the renewable energy sector,” said Matthias Taft, BayWa r.e CEO.
Based in 34 countries, the German company has developed over 6GW of renewable energy and manages over 10.5GW of assets.
EIP first acquired a minority share of BayWa r.e. back in 2021, with a 49% stake.
