Denmark-headed renewable power provider and Power-to-X (PtX) developer European Energy A/S has announced that it entered into an agreement with Mitsubishi HC Capital Inc., one of the leading investors in renewable energy in Japan, whereby Mitsubishi HC Capital will acquire a 20 percent stake in European Energy.
With this agreement, European Energy will significantly strengthen its capital base and growth potential and bring in Mitsubishi HC Capital as a strategic partner.
The gross proceeds of the deal will provide European Energy with a capital injection of approximately EUR 700 million from the issuance of new shares. This equity capital injection will contribute to the continued growth of European Energy.
The partnership with Mitsubishi HC Capital represents a significant milestone for European Energy. Their international presence and strategic mindset are key to boosting our company’s growth, especially with the increasing demand for capital in this industry. This transaction will further enhance our role in the green energy transformation, said Jens Due Olsen, Chair of the Board of Directors at European Energy.
Mitsubishi HC Capital will subscribe to approximately 72 million new shares in European Energy. Additionally, it will purchase around 3 million shares from the three major shareholders in European Energy.
This will make the company the second largest shareholder in European Energy, holding 20 percent of the share capital and voting rights.
We are most delighted to enter into this strategic partnership with European Energy. Mitsubishi HC Capital finds significant growth potential in European Energy and room to create synergies. Mitsubishi HC Capital by leveraging our expertise and strengths in the market will work together with European Energy to realize value creation and decarbonization, said Takuji Naruse, Managing Executive Officer and Head of Environment & Energy Business Division of Mitsubishi HC Capital.
As part of the transaction, Mitsubishi HC Capital will collaborate actively towards the value creation and strategic growth of European Energy, including through representation on the board of directors.
I am very pleased to welcome Mitsubishi HC Capital as part of our shareholder group. Their strategic focus aligns perfectly with our current strategy and goal of expanding European Energy’s impact in the fight against climate change. The capital injection more than triples our equity, offering us increased opportunities to accelerate our business, said Knud Erik Andersen, CEO and co-founder of European Energy.
Closing of the transaction is subject to the fulfillment of certain conditions, including regulatory approvals. It is expected to be completed in the first half of 2024.
FIH Partners and Kromann Reumert are advising European Energy on the transaction as financial and legal advisors, respectively.