MUNICH (dpa-AFX) - BayWa AG has reached a commercial agreement with Energy Infrastructure Partners (EIP), co-shareholder in BayWa r.e. AG, to implement a capital increase at BayWa r.e. AG. This capital increase will primarily be subscribed by EIP, leading to EIP obtaining a majority stake (change of control) in BayWa r.e. AG.
As part of the capital increase, BayWa AG will relinquish existing claims from shareholder loans to BayWa r.e. AG amounting to approximately 350 million euros. Together with additional debt financing, this capital infusion will meet BayWa r.e.'s additional capital and guarantee requirement of about 435 million euros until 2028, as identified in the restructuring report update. This necessity arises from geopolitical and market-specific uncertainties and the associated volatility in the renewable energy market.
Following the capital increase, BayWa AG's share in BayWa r.e. AG will decrease from the current 51% to 35%. Consequently, BayWa r.e. AG will no longer be fully consolidated in BayWa AG's consolidated financial statements. The transaction will financially align BayWa r.e. AG with its capital-intensive business model, which, from today's perspective, will also support the long-term positive development of the value of BayWa AG's remaining stake in BayWa r.e. AG.
By selling its majority stake, BayWa AG will intensify its focus on its core business as part of its transformation concept.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
