Renewable Energy M&A: BRUC Management divests 49% stake in ~1 GW solar portfolio in Spain to an IKEA affiliate for $647mn

published on 15 June 2023

Deal details: Interogo Holding, the investment division of the IKEA family foundation, will acquire a 49% stake in a 1,066 MW portfolio of operational and under-construction utility-scale solar projects in Spain. The transaction, facilitated by the infrastructure investment fund Inter Infrastructure Capital (IIC), represents Interogo Holding's inaugural investment in the renewable energy generation space. 

Deal rationale: The agreement underscores BRUC's strategy to acquire renewable assets that are in advanced stages of development or are ready-to-build (RtB). Bruc progresses the construction of these assets through third-party contracts and generates attractive returns on its investments by selling the projects once operational This approach has been predominantly executed in Spain, where the firm recently completed the acquisition of 1.1 GW of projects in the ready-to-build stage from Opdenergy. Furthermore, the current deal introduces Interogo Holding as a new member of BRUC's existing investor group, alongside OPTrust and the Universities Superannuation Scheme (USS), bolstering the company's financial capabilities for future portfolio expansion beyond its current markets.

For Interogo Holding, the deal represents its entry into Spain, one of the hottest markets for renewables development in Europe. The firm was an investor in electric vehicle (EV) charging solutions provider ABB E-mobility’s recent ~$221mn pre-IPO private placement. The current deal will raise the value of Interogo’s infrastructure portfolio to ~$1bn. 

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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