SINGAPORE, Dec 17 — Vortex, one of Europe’s foremost renewable energy investment platforms, has sold a 45 per cent equity stake in Vortex Solar Investments S.a.r.l to Malaysia’s second-largest pension fund, Kumpulan Wang Persaraan (Diperbadankan) (KWAP), for £67.5 million (approx. RM366.5 million).
Vortex, which is managed by EFG Hermes, will continue to maintain a five per cent long-term stake in Vortex Solar, having acquired 365 megawatts of solar photovoltaic-producing assets in the United Kingdom from TerraForm Power in January 2017.
This comes in line with Vortex Solar’s strategy of eyeing key investors from around the globe to diversify its partner base.
“This transaction demonstrates our ability to utilise the group’s liquid balance sheet effectively under our merchant banking strategy to support our core business in delivering on its investment targets, creating assets under management growth and delivering immediate as well as long-term returns for our shareholders,” said EFG Hermes Group Chief Executive Officer, Karim Awad, in a statement today.
By completing the sale to KWAP the company has successfully completed the cycle of the underwriting for Vortex Solar in less than 12 months, he said.
Meanwhile, KWAP’s Chief Executive Officer, Datuk Wan Kamaruzaman Wan Ahmad, said the partnership with Vortex demonstrated KWAP’s commitment towards environmental sustainability in its investments.
“This marks our first direct investment in the renewable energy sector, which strategically positions KWAP as the financial co-investor of choice for the expansion of this industry.
“Also, as an investor, we intend to increase our exposure in real assets, and renewable energy is one of most active sectors in the infrastructure asset class for deal flow, globally. We see this as an opportunity that will provide attractive investment income to the fund while supporting our environmental, social and governance efforts,” he said.
Following the completion of the transaction, the shareholding of Vortex Solar will stand at 50 per cent Tenaga Nasional Bhd, 45 per cent KWAP and five per cent Vortex.
The transaction is expected to close within the coming weeks. — Bernama
Source: The Malay Mail Online