EIP gains majority stake in BayWa Renewable Energy Unit after capital increase

BayWa AG announced on Sunday that Swiss energy investors Energy Infrastructure Partners (EIP), would acquire a majority stake of renewable energy unit BayWa. Through a capital raise, BayWa AG would reduce its stake from 51% to 35%.

In a press release, BayWa AG said that as part of its capital increase it will give up shareholder loans totaling 350 million euros (366.66 million dollars) to BayWa r.e.

The debt and capital financing will be used to cover the BayWa r.e. The statement said that the capital increase and debt financing provided will cover the additional capital and guarantee requirement of BayWa r.e.

EIP is requesting comments.

In July, it was reported that EIP and BayWa were in negotiations to increase EIP's stake in the renewable energy division to 70%-80%. This deal aimed to relieve financial pressure on BayWa while improving the creditworthiness for the renewables unit.

EIP paid 530 millions euros in late 2020 for its 49 percent stake in BayWa. $1 = 0.9546 Euros (Reporting and editing by Jamie Freed, Sonali Paul and Rhea Abraham in Bengaluru)

(source: Reuters)