Elia Group, a Belgian electricity system operator, has announced plans to generate approximately €2.2bn in equity to bolster its infrastructure investments, improve grid reliability, and advance its clean energy objectives.
Central to this strategy is the acquisition of €850m through a private placement of new shares targeted at select investors.
This private investment round includes contributions from entities such as ATLAS Infrastructure with The Future Fund, managed funds and accounts overseen by subsidiaries of BlackRock, the Canada Pension Plan Investment Board (CPP Investments), and Publi-T/NextGrid Holding, the principal shareholder in Elia Group.
The capital raised will support Elia Group’s growth and infrastructure agenda from 2025 to 2028.
Specifically, ATLAS with The Future Fund has pledged €234.6m, BlackRock is investing €117.3m, and CPP Investments will contribute €117.3m.
Publi-T/NextGrid is committing €380.7m to retain its 44.79% stake via a pro-rata investment.
The private placement is expected to address Elia Group’s equity funding needs, enabling the execution of its strategic plans up to 2028.
Elia Group CEO Bernard Gustin said: “This transaction will support the Group’s future growth. The proceeds raised via the PIPE along with the upcoming rights issue, will provide the Group with a significant capital infusion that will address its equity funding requirements.
“This will enable us to execute our investment plan. Elia Group remains committed to drive clean energy competitiveness and strengthen Europe’s strategic autonomy through secure and resilient energy systems.”
According to Elia Group, the PIPE initiative is part of a broader capital enhancement strategy targeting about €2.2bn in equity proceeds by 2025. Beyond the PIPE investment, this strategy includes a rights issue anticipated to raise approximately €1.35bn, expected to conclude before the end of next month.
Following the PIPE’s completion, Elia Group intends to proceed swiftly with the rights issue. The closure of the PIPE and the issuance of new shares are dependent on specific conditions being met, primarily the successful launch of the rights issue.
ATLAS, BlackRock, and CPP Investments have agreed to exercising any subscription rights connected to shares acquired through the PIPE process. Similarly, Publi-T/NextGrid will subscribe to all rights received from both existing and newly issued PIPE shares.
Furthermore, Publi-T/NextGrid Holding plans to acquire subscription rights from Publipart corresponding to their Class A share holdings amounting to 2.5%, intending to exercise these rights for additional Class C shares.
Overall, Elia Group has garnered irrevocable commitment subscriptions amounting to over 55% of the proposed rights issue size. The remaining portion is likely to be underwritten by a consortium of banks.
