Switzerland’s Energy Infrastructure Partners (EIP) has decided to acquire an additional stake in BayWa AG’s renewable energy unit, BayWa r.e., through a capital increase.
This transaction will reduce the German agricultural group BayWa AG’s holding in BayWa r.e. from 51% to 35% while EIP’s share will increase to 65%.
The latest move aims to alleviate financial pressure on BayWa AG while enhancing the credit profile of BayWa r.e.
The capital increase will see EIP invest an additional €150m ($157m) into BayWa r.e., reinforcing its financial position.
Subject to antitrust approval, this transaction will result in EIP holding a 65% stake in the renewable energy unit.
BayWa r.e CEO Matthias Taft said: “With EIP as the majority shareholder, we have a financially strong partner by our side with a long-term focus, who knows BayWa r.e. very well and has extensive expertise in the energy market.
“With the strengthened capital base and EIP’s support, we can reliably and consistently implement the initiated transformation. Our focus is on achieving financial stability and further developing BayWa r.e. as a leading player in the renewable energy sector.
“Now is the time to leverage efficiency potential, enhance profitability, and position the company competitively for the long term.”
EIP has been an investor in BayWa r.e. since 2021 and will assume the role of majority shareholder upon completion of the transaction.
The additional capital will support BayWa r.e.’s ongoing transformation programme, known as ‘r.e.power’.
Initially scheduled to run until the end of 2027, the restructuring timeline will now extend by one year to the end of 2028.
BayWa r.e. is engaged in developing, managing, and commercialising renewable energy projects and services worldwide.
