Mitsubishi HC Capital will subscribe to around 72 million ordinary new shares and purchase, in the aggregate, around 3 million ordinary shares from the three major shareholders in European Energy controlled by Knud Erik Andersen, Mikael D. Pedersen, and Jens-Peter Zink. As a result, Mitsubishi HC Capital will hold 20% of the outstanding shares and voting rights in European Energy at the closing of the transaction.
Through the transaction, European Energy will raise gross proceeds of approximately €700 million (~$763 million). The capital raise will be used to strengthen the company’s balance sheet and to contribute to the continued growth of European Energy.
Jens Due Olsen, Chair of the Board of Directors at European Energy, comments: “The partnership with Mitsubishi HC Capital represents a significant milestone for European Energy. Their international presence and strategic mindset are key to boosting our company’s growth, especially with the increasing demand for capital in this industry. This transaction will further enhance our role in the green energy transformation.”
Closing of the transaction is subject to fulfillment of certain customary closing conditions, including regulatory approvals, and is expected to take place in H1 of 2024.
According to Mercom’s recently released Annual and Q4 2023 Solar Funding and M&A report, M&A activity declined 25% YoY with 96 corporate M&A transactions in 2023 compared to 128 in 2022. The largest transaction was by Brookfield Renewable, which agreed to acquire Duke Energy’s unregulated utility-scale commercial renewables business in the U.S. for approximately $2.8 billion.
Recently, DIF Capital, an independent infrastructure equity fund manager, has acquired a 50% stake in the ground-mounted solar solutions provider Novar from ib vogt for an undisclosed amount. The divestment by ib vogt, a solar development and engineering, procurement, and construction (EPC) platform, is expected to generate funds for its future investments.