Previously, the plan was for the shares of the new but loss-making sustainable energy group BayWa r.e. to be fully transferred to co-shareholder Energy Infrastructure Partners (EIP). However, this agreement has fallen through, meaning BayWa retains its majority stake in the energy division.
Due to the failed deal with EIP, BayWa had to seek alternative financing to support its sustainable energy activities. The company has now secured approximately €435 million in funding for the transformation of BayWa r.e., following agreements with shareholders and financiers.
This additional financing consists of a combination of bank and shareholder loans, credit lines, and guarantees. Thus, the capital requirements of BayWa r.e. are covered until the end of 2028. Moreover, BayWa r.e. continues to benefit from the financial support and industry expertise of EIP.
With this financing, BayWa r.e. can accelerate its transformation in renewable energy. The company plans to have its 51% stake managed by an investment firm, while EIP retains its 49% share.
The failure of the original agreement with EIP and the subsequent alternative financing led to a revision of the settlement plan drafted at the end of last year. BayWa now remains the majority shareholder of BayWa r.e., diverging from the earlier plan to transfer the entire stake to EIP.
All this has caused uncertainty over the future of BayWa's restructuring. The company may need to adjust its plans to tackle the challenges in the renewable energy sector while ensuring its financial stability.