Falck Group has agreed to divest its entire stake of nearly 60% in Italian renewable energy developer Falck Renewables to Infrastructure Investments Fund (IIF) for €8.81 per share or €1.5bn.
Infrastructure Investments Fund is an investment vehicle advised by J.P. Morgan Investment Management.
The fund makes long-term investments in infrastructure and infrastructure-related assets, with a focus on utilities, contracted energy assets, and transportation/GDP-linked assets in Organisation for Economic Co-operation and Development (OECD) countries.
After acquiring the 60% stake, the investment vehicle will launch a mandatory cash tender offer to buy out the remaining shares of Falck Renewables at the same price of €8.81 per share.
The deal with Falck and the buy-out of the remaining 40% stake will enable Infrastructure Investments Fund to delist the renewable energy developer from the Italian stock exchange Borsa Italiana and make it a privately-owned firm.
Infrastructure Investments Fund chief investment officer Matthew LeBlanc said: “We are excited to support Falck Renewables SpA going forward and to build upon its significant success to date.
“In particular, we recognise the commitment of the experienced and dedicated management team and employees, as well as their development of the strategy to scale up the pipeline and accelerate growth.
“IIF looks forward to supporting the Falck Renewables SpA team’s delivery of their overall growth aspirations for the benefit of customers, communities and other stakeholders.”
Falck Renewables develops, designs, constructs, and operates renewable power generation facilities. The company has an installed capacity of 1.32GW through wind farms, solar power plants, biomass plants, and waste-to-energy plants.
The company has assets across Italy, the UK, Spain, the US, France, Sweden, and Norway.
Through its fully-owned subsidiary Vector Renewables, the Italian firm offers asset management services to clients having a combined installed capacity of around 3.8GW.
Falck Renewables CEO Toni Volpe said: “Falck Renewables SpA has grown consistently over the past years, thanks to the valuable and forward-looking support of Falck SpA, continuing to innovate, increase its know-how and adapt its business model to the energy transition.
“This extraordinary transaction, which is happening at a time of great change in the renewable energy sector, will provide further support, resources, and momentum to our medium to long term growth plans.
“We are proud to have attracted a partner like IIF, who will allow the Company to deliver on its ambitions.”
Infrastructure Investments Fund’s deal with Falck, which is subject to regulatory and other approvals, is expected to be closed in the first quarter of 2022.
