Vestas Wind Systems (Vestas) has entered into an agreement with the investment management company Copenhagen Infrastructure Partners (CIP), whereby Vestas will acquire a 25 percent minority stake in CIP’s parent companies.
Through its investment in CIP, Vestas aims to further expand its presence in renewable project development, and invest within areas of the renewables value chain that lie beyond its existing activities.
Vestas and CIP will collaborate on certain projects in the early phases of the development cycle, but Vestas will not grant CIP any other preferential consideration as a customer in regards to Vestas’ development pipeline and/or turbine sales. Through representation on the CIP board, Vestas will engage in discussions around the strategic direction of CIP, but will not be involved in decision making at fund, investment, or project level, including selection of wind turbine suppliers. Vestas will retain the flexibility to work with other parties on development projects, including other wind energy developers, utilities and owners.
The current value of CIP’s Assets under Management (AUM) is estimated to around EUR 14bn, which the company aims at increasing to EUR 75-100bn by 2030. Vestas 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. The transaction is expected to be completed in the first quarter of 2021.
