Private equity firm EQT is in talks to acquire a controlling stake in Waga Energy, with a plan to fully take over the renewable natural gas from waste producer.
The investment would made for EQT’s transition infrastructure strategy.
EQT is in discussions to acquire 54.1% of Waga Energy’s shares from its founders Mathieu Lefebvre, Guénaël Prince, Nicolas Paget and Holweb SAS, as well as other early investors including Starquest Capital, Tertium, Noria, SWEN Impact Fund for Transition and ALIAD.
The firm is offering an initial price of €21.55 per share, which could increase by up to €2.15 per share based on future performance.
In early Friday trading, Waga Energy’s shares traded 27% higher at €21.60 on the Euronext Paris stock exchange, valuing the company at €534.4m.
Waga Energy’s board of directors expects to support EQT’s initial proposal.
EQT said that, once the initial stake is acquired, it would file a “mandatory simplified cash tender offer” for all the remaining shares in Waga Energy at the same price offered.
Waga Energy specialises in producing renewable natural gas, or biomethane, from landfill gas. The company utilises its patented technology to cost-effectively convert landfill gas into RNG, which can then be used as a substitute for fossil natural gas.
Patrick Jaslowitzer, managing director within the EQT infrastructure advisory team, said: “We are thrilled to partner with Waga Energy at this pivotal moment in their growth journey. We believe the company is well placed to significantly contribute to the energy transition, owing to its unique positioning in its sector.
“EQT is committed to supporting Waga Energy’s future development, bringing financial resources and providing access to EQT’s network of industrial advisors in Europe and North America. Together, we will aim to drive forward the transition of the energy sector and set new standards for innovation.”
Asis Echaniz, partner within the EQT infrastructure advisory team, said: “As EQT transition infrastructure’s third investment, Waga Energy aligns perfectly with our strategy to scale businesses that help drive proven and profitable new energy solutions towards and a more resource-efficient, circular economy.
“We look forward to drawing on our long track record of investing in energy transition infrastructure globally to support the company in its next phase of growth.”
Mathieu Lefebvre, CEO and founder of Waga Energy, said that, having successfully become the largest player converting landfill gas to renewable natural gas in Europe, Waga Energy has the opportunity to become a leading player in the US.
“The partnership with EQT would unlock significant investment to accelerate our growth, enabling the company to transform our 16.8TWh pa pipeline both in North America and Europe,” he said. “We are looking forward to welcoming a long-term infrastructure investor who has deep experience in our sector.”
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