Vestas to Buy 25% Stake in Fund Manager CIP for about EUR 500m; Aims to Expand Footprints

Danish wind turbine maker Vestas has invested in fund manager Copenhagen Infrastructure Partners (CIP) to acquire a 25 per cent minority shareholding in the company. It will acquire the ownership stake at a price of EUR 500m, in the form of EUR 180m as upfront payment, and EUR 320m as an earnout.

December 18, 2020. By Manu Tayal

Danish wind turbine maker Vestas has invested in fund manager Copenhagen Infrastructure Partners (CIP) to acquire a 25 per cent minority shareholding in the company.

It will acquire the ownership stake at a price of EUR 500m, in the form of EUR 180m as upfront payment, and EUR 320m as an earnout.

Although, the current value of CIP’s Assets under Management (AUM) is estimated to be around EUR 14bn, which the company aims at increasing to EUR 75-100bn by 2030.

As per the deal, the company will invest into a new ‘Energy Transition Fund’ managed by CIP as an anchor investor. The fund will focus on nurturing Power-to-X and other technologies that can further increase the deployment of renewable energy across energy systems.

Through this investment, wind turbine giant is planning to further expand its footprints to a wider range of the renewable value chain that lie beyond its existing activities.

The move will help the company to build a new pathway to value creation, whereby it will access the long-term returns generated by renewable energy projects.

Commenting on the development, Henrik Andersen, Group President and CEO of Vestas, said that “the global transition towards a decarbonised energy system demands increased deployment of renewable energy, and more extensive supportive infrastructure. As a leader in sustainable energy solutions, Vestas is determined to play a role in driving this transformation, but to do so, we must increase our involvement across the renewable value chain and benefit from value creation across technology providers, developers, and owners. Our investment in Copenhagen Infrastructure Partners enable us to achieve both goals, and to maximise the market potential signalled by our new development business unit. I’m therefore very excited to begin this new journey with a global leader like CIP.”

“I am looking forward to Vestas being part of the board of CIP,” said Jakob Baruël Poulsen, CIP Managing Partner. “CIP and Vestas have a shared vision for the renewable energy market providing common ground for the strategic direction of CIP, which will continue to create innovative and attractive investment products for investors with a significant contribution to the global climate agenda.”

Meanwhile, the transaction is expected to be completed during the first quarter of 2021. 

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