Unique: Morgan Stanley weighs sale of stake in German renewable agency PNE

By Christoph Steitz, Andres Gonzalez and Emma-Victoria Farr

FRANKFURT/MADRID (Reuters) – Morgan Stanley (NYSE:)’s infrastructure funding arm is weighing a sale of a 40% stake in German wind and solar energy mission developer PNE AG after being approached by potential suitors, three folks acquainted with the matter stated.

Morgan Stanley Infrastructure Companions (MSIP) acquired the PNE stake following a failed takeover try in 2020. Since then, PNE’s shares have risen practically five-fold, pushed by international urge for food for renewable power belongings.

PNE, which has a mission pipeline of greater than 9 gigawatt and a era portfolio price 261 megawatt, has a present market capitalisation of 1.4 billion euros ($1.38 billion), valuing Morgan Stanley’s stake at 560 million euros.

The stake could appeal to curiosity from events together with French utility Engie and Sweden-based non-public fairness agency EQT (NYSE:), the folks stated, including that deliberations have been at an early stage and that there was no certainty a deal will occur.

Shopping for the entire stake would set off a compulsory takeover bid for all of PNE below German inventory market guidelines.

Morgan Stanley, Engie and EQT declined to remark. PNE was not instantly obtainable for remark.

A possible sale of MSIP’s participation would end in chunky income given the funding financial institution purchased in at 4.00 euros per share and noticed PNE’s worth develop to 18.50 euros.

Information in regards to the potential stake comes within the wake of main renewables deal in latest weeks, together with RWE’s $6.8 billion buy of Con Edison’s cleantech unit and BP (NYSE:)’s $4.1 billion takeover of U.S. biogas producer Archaea.

($1 = 1.0175 euros)