London, 01 December 2014
Macquarie European Infrastructure Fund 4 (MEIF4) and Wren House Infrastructure announce that they have entered into a binding agreement to acquire 100 per cent of E.ON’s Spanish and Portuguese integrated electricity businesses.
E.ON’s business in Spain and Portugal is an integrated electric utility operating in electricity distribution (32,000km of network across Spain), electricity generation (a portfolio of c. 4.0GW of conventional and renewable assets), and electricity and gas supply (c. 650,000 liberalised and regulated customers).
“We are delighted to be investing in this diverse and high quality portfolio of energy assets, at a time where greater certainty has been provided for the regulatory regime and economic prospects are improving. As a long term investor we look forward to supporting the management team in developing these businesses for the benefit of the communities they serve,” said Edward Beckley, European Head of Macquarie Infrastructure and Real Assets.
According to Wren House Infrastructure, the acquired business encompasses an attractive and sizeable integrated platform including generation, distribution and supply and represents a key opportunity for Wren House. The acquisition perfectly fits its portfolio investment objectives and its long-term focused partnership investment model.
This is MEIF4’s sixth investment, and follows on from its earlier energy and renewables investments in Sorgenia Green (Renewables: Italy and France), Open Grid Europe (Gas transmission network operator: Germany) and Czech Gas Networks (Gas distribution network: Czech Republic).
MEIF4 and Wren House Infrastructure are acquiring the business from its parent company E.ON S.E. Completion of the acquisition is subject to regulatory approval and is expected by Q1 2015.
Macquarie European Infrastructure Fund (MEIF4) is a specialist infrastructure fund focussed on long-term investment in high quality European infrastructure businesses. It invests on behalf of pension funds and institutional investors who are attracted to the positive long-term investment attributes of well-managed infrastructure.
MEIF4 is the latest in a family of European Infrastructure Funds managed by Macquarie Infrastructure and Real Assets (MIRA). Headquartered in London, MIRA is the world’s largest manger of infrastructure assets, on behalf of pension funds, insurance companies, governments and other long-sighted investors.
MIRA manages investments in over 100 infrastructure businesses around the world, representing a total of €76 billion in assets under management. For more information, visit www.mirafunds.com.
Wren House Infrastructure was set up in 2013 as the global direct infrastructure investment vehicle of the Kuwait Investment Authority. The objectives of Wren House include building partnerships, the sourcing and execution of transactions and asset management.
The strategy of Wren House is the creation of a long-term focussed, sustainable infrastructure platform, which it pursues through partnership investment models for sizeable transactions.