Renewable Energy Update : Third Quarter 2012
Deloitte Financial Advisory Services
This quarter’s Renewable Energy Update, produced by Deloitte Financial Advisory Services, summarizes the most recent transactions along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
This quarter’s highlights
M&A activity in the renewable energy market has remained stable in Q3’12 with Mergermarket reporting 25 main renewable energy deals in Europe, which is only slightly lower than the number of deals in the previous quarter (29 deals).
Stock quotes of the NEX (New Energy Global Innovation Index) underperformed the DJ Euro Stoxx 50 by 17% in average over the last 6 months, reaching its lowest level at US$ 102.4 on July 25, 2012. Over the last quarter, NEX however rose by c. 10% as a general trend observed in the capital markets in Europe.
In Europe, the largest disclosed M&A transaction during Q3’12 was the acquisition of Q-Cells, the manufacturer of solar cells and modules, for US$322m by Hanwha. Hanwha will only pay US$50m in cash to Q-Cells, but it will also assume about US$272m of debt (note: Deloitte Germany acted as exclusive financial advisor to Q-Cells). Some large deals were concluded in the wind sector during this quarter: Arise Windpower AB, a leading player in the Swedish wind power market has concluded an agreement with Bergvik Skog AB to acquire the 400MW Skaftasen wind power project, PNE Wind AG has sold its offshore wind parks Gode Wind I, II and III to the Danish energy company DONG Energy A/S for €157m and German asset management group Meag AG, a unit of Munich Re, acquired three UK wind farms with a total capacity of 102.2MW from HgCapital Plc.
In Belgium, European Clean Tech I SE (’ECT’) has announced that its general meeting has approved the proposed business combination with Electrawinds NV which is a next important step towards the completion of the merger that is expected to be finalized during Q4’12.
For more info please check out the Renewable Energy newsletter below.