Back to the complete issue
Sunday, 3 October 2021

EFG Hermes eyes minority stake in Spanish Ignis Energia

EFG Hermes is in talks to acquire a significant minority stake in Spanish renewable energy company Ignis Energia in a transaction that would value it at around EUR 1 bn, Spanish newspaper Expansion reported Thursday. EFG is reportedly looking to purchase 45-49% of the company through a capital increase, an agreement that would allow Ignis to proceed with 3 GW of new developments. EFG Hermes declined to comment when we reached out last week.

Ignis Energia is one of Spain’s largest solar energy companies: As of last year, the company had 14.2 GW of renewables under development and 2.9 GW of assets under management, according to its website.

EFG Hermes isn’t a stranger to the renewable energy sector: Its private equity arm sponsors and manages Vortex Energy, an investment platform that targets renewable energy investments. Vortex’ fourth fund, Vortex Energy IV was looking at a wind and solar energy developer in Spain, Karim Moussa told us this past summer. Moussa is head of private equity and asset management at EFG Hermes and CEO of Vortex Energy. Moussa said the fund was also looking at potential transactions in Poland, Greece, the UK and the US.

All of Ignis could eventually be on the auction block: Expansion reported earlier this year that Ignis was looking to sell a minority stake to fund the developments, and had hired Citigroup to help it find a partner. The company was reportedly looking for EUR 500 mn investment, and is open to allowing the investor to eventually buy out the entire company.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.