(Bloomberg) – Investment firm EQT AB is strengthening its green agenda by attempting to acquire one of Sweden’s largest wind farm developers privately. This move follows previous investments by EQT in the renewable energy industry in both Europe and the United States as part of its strategy to benefit from the increasing electrification of advanced economies. EQT Infrastructure VI has offered SEK16.4bn ($1.5bn) for OX2 AB, a 43.4% premium compared to the previous closing price, according to a statement issued by the firm. Shares in OX2 rose by their highest percentage ever after commencing trading in Stockholm on Monday. This transaction represents another step forward for EQT in the realm of renewable energy as part of its broader energy transition strategy, following previous acquisitions such as German power producer Tion Renewables and Cypress Creek Renewables in the US. OX2 is Sweden’s leading publicly traded wind energy company, operating projects across Sweden and Australia. The company reported a first-quarter loss during the previous period, and its stock value has decreased by nearly a quarter so far this year. According to Christoph Balzer, a partner at EQT Partners and head of the European energy team, “This is spot on for EQT and our strategy in the energy transition space.” He continued, “We will continue geographically and technologically in line with the direction the business has taken, and we will naturally continue working with the current management, who we strongly support.” OX2’s major shareholder Peas Industries, which holds approximately 46% of the company’s shares and votes, has expressed support for the proposal. The independent bid committee of the OX2 board of directors has also unanimously recommended that shareholders approve the offer. EQT claims to be a suitable candidate to take over OX2 due to its prior expertise in investing in the renewable energy sector and the broader field of energy transition. EQT intends to contribute further investment to OX2’s pipeline as part of the acquisition. The full offer documents are set to be released on June 24, with the proposed transaction scheduled to conclude in October.
(Adds share price and remarks from EQT partner Christoph Balzer)
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