Downing Renewables & Infrastructure to acquire utility company Elektra – Downing Renewables & Infrastructure has signed an exclusivity agreement with AB Edsbyns Elverk, a local Swedish multi-utility, to buy EE’s subsidiary Elektra Nät AB – a local regulated electricity distribution company – and a portfolio of three hydropower plants.
The trust has submitted an indicative bid in excess of SEK 300 million (around £25.5m). Confirmation is subject to due diligence by DORE and approval by EE shareholders at the upcoming AGM on 29 June. If successful, it will be DORE’s first acquisition of a utility company, and the company plans to continue investing in Edsbyn, as a hub for its investment in the Swedish renewable energy and electricity distribution sectors.
EE’s portfolio of three hydropower plants have a total annual generation of c.33GWh, and complement DORE’s current hydropower assets in Sweden which are located nearby. The company raised £122.5m in its IPO last December, and is building a diversified portfolio of renewable energy generation and other infrastructure in the UK, Ireland and Northern Europe.
Tom Williams, Head of Energy & Infrastructure at Downing LLP, said: “This proposed acquisition further diversifies DORE’s portfolio and revenue, with the addition of long-term regulated revenues from Elektra that are not exposed to energy prices. We are particularly excited about the possibility of building on the strong foundations in Edsbyn and growing the business there into a hub for our broader operations in the sector in Sweden.”
DORE : Downing Renewables & Infrastructure to acquire utility company Elektra