Vestas to take 25% stake in CIP

Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) has agreed to acquire a 25% stake in investment manager Copenhagen Infrastructure Partners P/S (CIP), saying on Friday that it seeks to expand into areas of the renewables value chain that lie beyond its existing activities.

Vestas will pay EUR 500 million (USD 612.8m) for the stake -- EUR 180 million as upfront payment and EUR 320 million as an earn-out -- and get a seat on the CIP board.

CIP, currently managing around EUR 14 billion worth of assets, is targeting AUM of between EUR 75 billion and EUR 100 billion by 2030, according to Vestas.

The Danish duo expects to finalise the transaction in the first quarter of 2021.

Vestas said it will use its position on the board to take part in discussions around the strategic direction of CIP and collaborate on certain projects in the early stages of the development cycle. However, it will not participate in decision making at fund, investment or project level, nor be involved in picking wind turbine suppliers.

CIP will not be given preferential consideration as a Vestas customer, the turbine maker said, adding that it will have the flexibility to work with other parties on project development.

The agreement will also see Vestas become anchor investor in the new CIP-managed energy transition fund, which is to focus on developing power-to-X technologies.

Fresh off gaining full control over its 50/50 offshore wind joint venture with Japan’s Mitsubishi Heavy Industries Ltd (TYO:7011), Vestas aims to grow its footprint in the renewables development and move beyond its current position of a co-developer and early-stage investor. It said that this new direction will encompass investment management and optimisation, including asset management and divestments.

(EUR 1.0 = USD 1.226)

Choose your newsletter by Renewables Now. Join for free!