Downing Renewables & Infrastructure Trust (DORE) has signed an exclusivity agreement with AB Edsbyns Elverk, a local Swedish multi-utility (EE) to buy EE’s subsidiary Elektra Nät AB (“Elektra”) and a portfolio of three hydropower plants. Elektra is a local regulated electricity distribution company in Edsbyn, central Sweden.
DORE has submitted an indicative bid in excess of SEK 300 million, whose confirmation is subject to final due diligence by the Company and approval by EE shareholders at its Annual General Meeting on 29 June. The assets are in line with DORE’s investment strategy and the acquisition of Elektra will be DORE’s first of a utility company. If acquired, DORE plans to continue investing in Edsbyn, as a hub for its investment in the Swedish renewable energy and electricity distribution sectors.
EE’s portfolio of three hydropower plants, with a total annual generation of c.33GWh, complement DORE’s current hydropower assets in Sweden and are located nearby.
DORE, which raised £122.5 million in its IPO on the London Stock Exchange in December 2020, is building a diversified portfolio of renewable energy generation and other infrastructure in the UK, Ireland and Northern Europe.
Tom Williams, head of energy & infrastructure at Downing LLP, said: "This proposed acquisition further diversifies DORE’s portfolio and revenue, with the addition of long-term regulated revenues from Elektra that are not exposed to energy prices. We are particularly excited about the possibility of building on the strong foundations in Edsbyn and growing the business there into a hub for our broader operations in the sector in Sweden.”