EQT unit to take control of German Tion Renewables

Swedish private equity firm EQT AB (STO:EQT) has reached an agreement to take a controlling 82.1% stake in German renewables company Tion Renewables AG (ETR:TION) in a deal that implies a total equity value of EUR 150 million (USD 161.2m).

An investment vehicle of EQT Active Core Infrastructure SCSp has agreed to acquire just above 3.4 million Tion shares, or a stake of 71.7%, from global clean energy investor Pelion Green Future Alpha GmbH. The latter has decided to re-invest and keep an indirect minority stake in the business post-close, the Swedish firm said in a statement on Friday.

At the same time, EQT has separate agreements for the purchase of an additional stake of 10.4%.

The deal with EQT values Tion at EUR 31.61 per share.

Shares in Tion jumped on the news, trading 14.88% higher at EUR 27.80 in Frankfurt as of 0915 CET on Monday. The company’s market capitalisation tops EUR 140 million (USD 150.7m), according to Frankfurt Stock Exchange data.

Upon completion of the transactions, EQT, which has committed to transforming Tion into a leading platform for investments in large energy transition projects, intends to delist the German company from all stock exchanges at which its shares are traded.

The transaction, which hinges on regulatory clearances and standard closing conditions, is set to close in the second or third quarter of 2023.

Tion, formerly Pacifico Renewables, has 167 MW of cash-generating operating assets and also holds a stake in German independent power producer clearvise AG (ETR:ABO). Its portfolio includes wind and solar parks across Europe. The Gruenwald, Bavaria-based company produces more than 300 GWh of green electricity annually.

As a result of the agreement with EQT, Tion and clearvise also announced separately that a previously signed memorandum of understanding (MoU) between the companies has been terminated. The MoU envisaged the possible full acquisition of Tion's wind and solar portfolio by clearvise.

(EUR 1 = USD 1.074)

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