Renewables investor Eolus Vind is acquiring the renewable energy business of Finnish developer YIT in a €48m deal.
YIT said the agreement to sell YIT Energy, includes the sale of project development portfolio of wind and solar power and the personnel working with the business to Nasdaq Stockholm-listed Eolus.
YIT, which announced in June that its 2.3GW renewable energy arm was under a strategic review, said following the completion of the transaction this month, it will no longer own activities in wind and solar power development projects.
The portfolio comprises 1.1GW of mature projects involving around 900MW of onshore wind projects and just over 200MW of solar power projects. The remaining 1.2GW are projects in earlier phases.
The transaction consists of a €25m fixed price and a €23m variable purchase price based on project sales and completed projects.
Per Witalisson, CEO of Eolus, said: “This acquisition is a long-term investment for Eolus and a major step in our expansion in Finland where we see a good potential for more renewable energy. With our experience, our long-term commitment and our staying power, we have the capacity to develop and realise the projects in the best possible way.
“By adding the projects and the experienced people from YIT Energy, Eolus will become a significant player in the renewable energy market in Finland.”
Tiina Partanen, country manager at Eolus Finland, said: “The YIT colleagues bring valuable experience from all phases in the development process and their experience from construction management of wind power projects will be of great value once we start constructing our first Finnish projects in a couple of years.”
Tuomas Mäkipeska, CFO of YIT Corporation, said: ”Eolus has over 30 years of experience in developing the renewable energy business. The company has strong experience and excellent capabilities in taking the renewable energy business forward, which is positive both for our partners as well as personnel.”
Mäkipeska added that Eolus can develop the business forward with more extensive resources and support the future growth.
“I’m pleased that the strategic review of the business has been successfully completed through this transaction. The deal strengthens our financial position and improves our focus on our core businesses,” said Mäkipeska.
YIT said it will continue the strategic review of certain assets and operations such as its infrastructure operations in Sweden, and selected investments, including YIT’s ownership stake in Tripla Mall. YIT has the potential to release approximately €400m of capital during the years 2023–2024, the company said.
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