BayWa cites economic reasons for the failure of its deal to sell a majority stake in BayWa r.e. to EIP
It is now seeking shareholder and bank support to raise alternative financing
However, BayWa r.e. said it has arranged €435 million from shareholders and financiers
German agricultural trading company BayWa AG has not been able to reach a deal for the sale of a majority stake in its renewable energy subsidiary BayWa r.e. to Energy Infrastructure Partners (EIP).
BayWa said ‘a final agreement on details of this concept could not be reached for economic reasons,’ without sharing any details.
EIP had previously been eyeing a 65% stake in BayWa r.e. with a €150 million investment, expanding its shareholding in the company from 49% as part of the latter’s restructuring. BayWa AG planned to retain the remaining 35% stake (see EIP To Increase Stake In German Renewables Company BayWa R.E.).
With the deal falling through, BayWa r.e. says it has arranged €435 million ($474 million) in funds from its shareholders and financiers to carry out its transformation process. This transaction, however, is likely to be completed in Q2 2025.
“This solution takes us several steps forward – the support of shareholders and financiers will also give us a positive boost as we rapidly implement our transformation,” said Matthias Taft, the CEO of BayWa r.e., a company that builds and operates wind and solar power plants.
However, BayWa r.e.’s parent BayWa AG separately announced that it is in advanced talks with its, as well as the former’s, core banks and its major shareholders Bayerische Raiffeisen-Beteiligungs-AG and Raiffeisen Agrar Invest AG on an alternative financing concept for BayWa r.e. AG. With this, it seeks to cover the capital and guarantee requirements of BayWa r.e. AG for the duration of the planned restructuring phase until the end of 2028.
BayWa AG also plans to transfer its stake in BayWa r.e. to an investment management company as a ‘next step’ to achieve operational separation and deconsolidation.
The parent company suffered a negative EBIT in 9M 2024 mainly due to difficult market conditions for its renewable energy segment. It blamed massive overcapacity in the solar PV components market and the drop in module prices, along with delays in project business and lower revenues in energy trading as the factors responsible.
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