Global investment firm EQT AB’s fund EQT Infrastructure VI, through the investment vehicle Otello BidCo AB, has completed its recommended public offer for OX2 AB, a renewable energy platform.

OX2 is a renewable energy platform with a large and diverse project portfolio across all major technologies, including onshore and offshore wind, solar, and storage, EQT said in a statement. Founded in 2004, OX2 has grown into a leading independent renewable energy developer in Europe and beyond.

Headquartered in Stockholm, Sweden, OX2 is present in 11 markets across Europe and established a presence in Australia in 2023. The company has a strong operational and financial track record and a robust set of capabilities across the value chain, including development, construction, and management, EQT noted.

In May, Otello BidCo AB announced a recommended public offer for 100 percent of OX2’s shares at a price of $5.77 (SEK 60) in cash per share. At the end of the extended acceptance period, Otello BidCo controlled 269,282,357 shares in OX2, corresponding to 98.81 percent of the shares and votes in OX2. The consolidated transaction value is $1.57 billion (SEK 16.35 billion).

“To maintain and grow its market position, capitalize on emerging opportunities and strengthen its presence within renewable energy in the long term,” EQT said it will support OX2 to evolve its business model from a pure developer to an integrated renewables developer and asset owner, while retaining its ability to sell projects.

EQT added that it will leverage its extensive experience investing in the renewables sector and in the energy transition broadly to support the company’s transformation and plans to provide additional investment in OX2’s pipeline.

OX2 has applied for delisting from Nasdaq Stockholm which is expected to be completed on October 21.

Christoph Balzer, Partner in the EQT Infrastructure Advisory Team, said, “There is a tremendous need for infrastructure investment if the world is to achieve net zero and power new electricity demand ranging from data center infrastructure to the electrification of industries. OX2 is an impressive platform with strong growth potential, and we are excited to partner with the company to accelerate its growth to become an integrated renewables developer and asset owner”.

With this transaction, EQT Infrastructure VI is expected to be 45-50 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) based on target fund size and subject to customary regulatory approvals, according to the release.

EQT said it expects to see continued significant growth in the renewables market over the coming years, driven by trends including decreasing technology costs and growing demand for green electricity.

In an earlier press release, Otello BidCo stated that “To unlock OX2’s full potential, we believe it would benefit from a transition to a more long-term, sustainable business model and becoming an integrated renewables developer and asset owner”.

EQT is a purpose-driven global investment organization with $268.85 billion (EUR 246 billion) in total assets under management within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership, according to the release.

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