Mitsubishi HC Capital Group has agreed to acquire a 20% stake in Danish renewable energy developer European Energy in a deal worth nearly €700m.
Under the terms of the agreement, Mitsubishi HC Capital will subscribe to about 72 million new shares in European Energy.
Besides, Mitsubishi HC Capital will buy approximately three million shares from the three major shareholders in European Energy.
Upon the completion of the proposed deal, Mitsubishi HC Capital will become the second largest shareholder in the Danish renewable energy developer.
Mitsubishi HC Capital environment and energy business division managing executive officer and head Takuji Naruse said: “Mitsubishi HC Capital finds significant growth potential in European Energy and room to create synergies.
“Mitsubishi HC Capital by leveraging our expertise and strengths in the market will work together with European Energy to realise value creation and decarbonisation.”
Through the transaction, European Energy aims to bolster its capital base and growth potential.
Furthermore, the investment in the clean energy company will enable Mitsubishi HC Capital to improve and extend its environment and energy business in Europe.
As part of the deal, Mitsubishi HC Capital will actively work towards the value creation and strategic growth of European Energy.
Established in 2004, European Energy has a development pipeline of more than 60GW.
European Energy CEO and co-founder Knud Andersen said: “I am very pleased to welcome Mitsubishi HC Capital as part of our shareholder group. Their strategic focus aligns perfectly with our current strategy and goal of expanding European Energy’s impact in the fight against climate change.
“The capital injection more than triples our equity, offering us increased opportunities to accelerate our business.”
The deal is anticipated to be closed in the first half of 2024, subject to the fulfilment of certain conditions, including regulatory approvals.
FIH Partners and Kromann Reumert are financial and legal advisors, respectively, for European Energy on the transaction.
