J.P. Morgan Investment Management advised Infrastructure Investments Fund (IIF) is to acquire a 60% stake in Italian renewable energy company Falck Renewables SpA. IIF has reached an agreement for this majority acquisition with the Italian company's parent Falck SpA that's selling all of its stake in the firm.
Falck Renewables has an installed capacity of 1.32 GW of wind, solar, waste-to-energy (WtE) and biomass assets in Europe. Apart from developing, building and managing power plants, Falck Renewables also offers technical advisory and asset management services for close to 3.8 GW through its wholly owned subsidiary Vector Renewables.
The backing of IIF, explained Falck Renewables' CEO Toni Volpe, will enable the company to increase its know-how and adapt its business model to 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," added Volpe who will continue to lead the company under new ownership along with current CFO Paolo Rundeddu.
IIF will purchase the majority stake in the company by paying €8.81 per share in cash. Once the transaction is closed in Q1/2022, IIF will launch a mandatory cash offer for Falck Renewables' remaining share capital at the same price to delist the company. Once that happens, IIF will launch a cash tender offer for the company's convertible bond addressing it to qualified investors only.
Falck Renewables also has a joint venture with Eni, called Novis that's present in the US solar and wind energy space (see Falck & Eni To Acquire US Wind & Solar Developer).
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