Ignitis Group Sells 49% of Vilnius CHP to Quaero Capital for €120M
Event summary
- Ignitis Group agreed to sell 49% of Vilnius CHP to Quaero Capital for €120M, including a €10M earn-out component.
- The deal is part of Ignitis Group's asset rotation program and fulfills a European Commission requirement.
- Ignitis Group will retain a 51% stake in Vilnius CHP post-transaction.
- The transaction is expected to close in Q2 2026, subject to regulatory approvals.
- Vilnius CHP has a total power capacity of 93 MW and heat capacity of 239 MW.
The big picture
This transaction marks a significant step in Ignitis Group's asset rotation strategy, aligning with broader trends in European energy infrastructure investment. The sale to Quaero Capital, a long-term infrastructure investor with €3.8B in assets under management, underscores the growing interest in high-efficiency cogeneration plants. The deal also highlights the European Commission's influence in shaping energy projects through regulatory requirements.
What we're watching
- Regulatory Compliance
- Whether the transaction will receive timely approval from Lithuanian and Latvian authorities.
- Financial Impact
- How the €120M capital raise will affect Ignitis Group's leverage metrics and Green Capacities and Networks development.
- Operational Synergy
- The pace at which Quaero Capital can integrate and optimize Vilnius CHP's operations.
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