As part of the capital increase, the parent company Baywa AG has agreed to waive approximately €350 million of current claims against Baywa r.e. arising from shareholder loans. The capital increase and additional debt financing will cover the additional capital and guarantees (aval) requirements of BayWa r.e. identified in the updated restructuring opinion of around €435 million until 2028, the group announced.
BayWa r.e. sells 222 MW solar projects to Octopus Energy Generation
These capital and guarantee requirements are the result of geopolitical and market-specific uncertainties and the associated volatility in the renewable energy market.
Committees and authorities still have to give their approval
Specifically, Baywa AG's stake in Baywa r.e. will be reduced from 51 per cent to 35 per cent after the capital increase. This also means that Baywa r.e. will no longer be fully consolidated in the parent company's consolidated financial statements. The transaction has advantages for Baywa r.e., as it will put the company in a financially sound position in line with its capital-intensive business model.
Baywa r.e.'s first agri-PV plant in Spain is financed via a PPA with VELUX
This agreement between Baywa and EIP must now be formalised in binding contracts. This in turn requires the approval of the EIP and Baywa AG supervisory boards. In addition, the transaction must also be approved by the competition authorities. (su/hcn)
