Global private equity group, EQT Infrastructure II, has reached an agreement in principle to sell German waste to energy firm EEW Energy from Waste (formerly E.ON Energy from Waste) to Beijing Enterprises Holding for nearly €1.5 billion.
EQT said that the agreement is only subject to clearance under the German Foreign Trade and Payments Ordinance and that it expects the transaction to close by end of February 2016.
The equity purchase price amounts to €1.438 billion and the transaction is said to represent the largest Chinese direct investment in a German company to date.
EEW operates an installed waste capacity of around 4.7 million tonnes producing in total 6 TWh of energy. In 2014, EEW generated sales of about €539 million.
According to EQT, throughout its ownership it has supported EEW in significant growth, both organically and through selected strategic acquisitions.
It said that the management team and corporate governance structure have been strengthened, and EQT Infrastructure II has driven transformation of EEW into a highly efficient organisation focused on providing long-term, environmentally friendly waste disposal solutions and energy from waste production.
“Over the past three years, we have used our industrial expertise to support EEW in strengthening its core business processes,” commented Matthias Fackler, partner at EQT Partners, Investment Advisor to EQT Infrastructure II.
“We are convinced that Beijing Enterprises Holding is the right partner to support the further development of EEW including its continued domestic and international growth.”
EQT Infrastructure II acquired a 51% stake in EEW in March 2013, and developed the business in partnership with E.ON, one of Europe’s largest energy groups. In April 2015, EQT Infrastructure II purchased the remaining 49% of the shares after E.ON announced its group restructuring program.
EQT Infrastructure II was advised by Morgan Stanley.
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