KWAP buys stake in Vortex Solar for £67.5m

SINGAPORE: Vortex, one of Europe’s foremost renewable energy investment platforms, has sold a 45% equity stake in Vortex Solar Investments to Malaysia’s second-largest pension fund, Kumpulan Wang Persaraan (Diperbadankan) (KWAP), for £67.5 million (RM370 million).

Vortex, which is managed by EFG Hermes, will continue to maintain a 5% long-term stake in Vortex Solar, having acquired 365 megawatts of solar photovoltaic-producing assets in the United Kingdom from TerraForm Power in January 2017.

This comes in line with Vortex Solar’s strategy of eyeing key investors from around the globe to diversify its partner base.

“This transaction demonstrates our ability to utilise the group’s liquid balance sheet effectively under our merchant banking strategy to support our core business in delivering on its investment targets, creating assets under management growth and delivering immediate as well as longterm returns for our shareholders,” said EFG Hermes Group CEO Karim Awad, in a statement yesterday.

By completing the sale to KWAP, the company has successfully completed the cycle of the underwriting for Vortex Solar in less than 12 months, he said.

Meanwhile, KWAP’s CEO, Datuk Wan Kamaruzaman Wan Ahmad, said the partnership with Vortex demonstrated KWAP’s commitment towards environmental sustainability in its investments.

“This marks our first direct investment in the renewable energy sector, which strategically positions KWAP as the financial co-investor of choice for the expansion of this industry,” he said.

After the completion of the transaction, expected within the coming weeks, the shareholding of Vortex Solar will stand at 50% Tenaga Nasional Bhd, 45% KWAP and 5% Vortex. – Bernama