Private equity giant EQT has made headlines with its recent bid to acquire OX2 AB, a leading renewable energy platform, for a staggering $1.5 billion. The move underscores EQT’s strategic focus on the renewable energy sector and its commitment to driving sustainable growth in the industry.
EQT Infrastructure VI, operating through Otello BidCo AB, has proposed a cash offer of 60 crowns per share to OX2 shareholders, representing a generous 43% premium over OX2’s closing price on Friday. The bid signals EQT’s confidence in OX2’s potential and its determination to capitalize on the burgeoning renewable energy market.
OX2 has established itself as a powerhouse in the renewable energy arena, specializing in the development, construction, and sale of large-scale renewable energy solutions. With a robust portfolio encompassing onshore and offshore wind, solar energy, and energy storage projects, OX2 is at the forefront of driving sustainable energy initiatives across eleven European markets.
The acceptance period for the offer is slated to begin around June 25, 2024, and conclude around October 14, 2024. EQT’s bid has garnered significant support, with OX2’s main owner, Peas Industries AB, committing to accept the offer. Moreover, an independent bid committee formed by OX2 has unanimously recommended that shareholders embrace the proposal.
EQT’s strategic rationale behind the acquisition is clear: the renewables industry is poised for substantial growth, fueled by strong underlying trends. Despite facing challenges such as higher interest rates, prolonged development timelines, and supply chain disruptions, OX2 stands to benefit from evolving its business model to become an integrated renewables developer and asset owner, while retaining its project selling capability.
Christoph Balzer, partner at EQT Partners, emphasized the potential for OX2’s evolution under EQT’s ownership, highlighting the firm’s ability to provide both capital and industry expertise to expedite its growth trajectory. Johan Ihrfelt, CEO of Peas Industries, echoed this sentiment, expressing confidence in OX2’s prospects under EQT’s stewardship.
In addition, it’s worth noting that just last month, BalticWind reported on the progress of one of OX2’s offshore investments. The County Administrative Board of Gotland granted a Natura 2000 permit for the offshore wind farm Aurora, a project being developed by OX2 in partnership with Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer. Located outside the islands of Gotland and Öland in Sweden, Aurora holds significant promise for renewable energy production. Pending government approval, construction could commence as early as 2028, with production slated to begin before 2030.
Aurora, situated approximately 22 kilometers south of Gotland and over 30 kilometers east of Öland in the Baltic Sea, has the potential to generate up to 24 TWh of electricity once fully operational. Notably, the Baltic Sea holds strategic importance for the Swedish Armed Forces, and the wind farm’s integration of sensors could bolster surveillance and control efforts in the region. This development underscores OX2’s commitment to driving innovation and sustainability in the renewable energy sector, paving the way for transformative change in the years to come.
Source: EQT & OX2 & Reuters & BalticWind.EU
