SINGAPORE • Vortex, one of Europe’s foremost renewable energy investment platforms, has sold a 45% equity stake in Vortex Solar Investments Sarl to Malaysia’s second-largest pension fund, Retirement Fund Inc (KWAP), for £67.5 million (RM364.5 million).
Vortex, which is managed by EFG Hermes Holding SAE, will continue to maintain a 5% long-term stake in Vortex Solar, having acquired 365 megawatts of solar photovoltaic- producing assets in the UK from TerraForm Power Inc in January 2017.
This comes in line with Vortex Solar’s strategy of eyeing key investors from around the globe to diversify its partner base.
“This transaction demonstrates our ability to utilise the group’s liquid balance sheet effectively under our merchant banking strategy to support our core business in delivering on its investment targets, creting assets under management growth and delivering immediate as well as long-term returns for our shareholders,” said EFG Hermes group CEO Karim Awad in a statement yesterday.
By completing the sale to KWAP, the company has successfully completed the cycle of the underwriting for Vortex Solar in less than 12 months, he said.
Meanwhile, KWAP CEO Datuk Wan Kamaruzaman Wan Ahmad said the partnership with Vortex demonstrated KWAP’s commitment towards environmental sustainability in its investments.
“This marks our first direct investment in the renewable energy sector, which strategically positions KWAP as the financial co-investor of choice for the expansion of this industry.
“Also, as an investor, we intend to increase our exposure in real assets, and renewable energy is one of the most active sectors in the infrastructure asset class for deal flow, globally. We see this as an opportunity that will provide attractive investment income to the fund while supporting our environmental, social and governance efforts,” he said.
Following the completion of the transaction, the shareholding of Vortex Solar will stand at 50% for Tenaga Nasional Bhd, KWAP (45%) and Vortex (5%).
The transaction is expected to close within the coming weeks. — Bernama