(Reuters) – BayWa AG said on Sunday that Swiss energy investor Energy Infrastructure Partners (EIP) would gain a majority stake in renewable energy unit BayWa r.e. through a capital increase that would lower BayWa AG’s stake to 35% from 51%.
As part of the capital increase, BayWa AG will relinquish 350 million euros ($366.66 million) in shareholder loans to BayWa r.e., the German agricultural group said in a statement.
The capital increase and debt financing provided will cover the additional capital and guarantee requirement of BayWa r.e. of about 435 million euros until 2028, the statement added.
Reuters is seeking comment from EIP.
Reuters reported in July that EIP was in talks with BayWa to increase its stake in the renewable energy unit to at least 70%-80% from 49%, in a deal designed to ease financial pressure on BayWa and help improve the creditworthiness of the renewables unit.
EIP in late 2020 paid 530 million euros for its 49% stake in BayWa r.e.
($1 = 0.9546 euros)
(Reporting by Rhea Rose Abraham in Bengaluru; Editing by Jamie Freed and Sonali Paul)
