Mitsubishi HC Capital to acquire 20% stake in European Energy

Denmark’s European Energy and Japan’s Mitsubishi HC Capital have entered into an agreement in which Mitsubishi will acquire a 20% stake in European Energy.

Specifically, Mitsubishi HC Capital will subscribe to approximately 72 million new shares in European Energy, and additionally, will purchase around three million shares from the latter’s three major shareholders, making it the second largest shareholder in European Energy, holding 20% of the share capital and voting rights.

European Energy said the gross proceeds of the deal will provide it with a capital injection of approximately €700 million from the issuance of new shares, adding that this equity capital injection will contribute to the continued growth of the company.

As part of the transaction, Mitsubishi HC Capital will collaborate actively towards the value creation and strategic growth of European Energy, including through representation on the board of directors, European Energy further revealed.

The closing of the transaction is subject to the fulfilment of certain conditions, including regulatory approvals. It is expected to be completed in the first half of 2024.

Jens Due Olsen, Chair of the Board of Directors at European Energy, stated: “The partnership with Mitsubishi HC Capital represents a significant milestone for European Energy. Their international presence and strategic mindset are key to boosting our company’s growth, especially with the increasing demand for capital in this industry. This transaction will further enhance our role in the green energy transformation.”

Knud Erik Andersen, CEO and Co-Founder of European Energy, added: “I am very pleased to welcome Mitsubishi HC Capital as part of our shareholder group. Their strategic focus aligns perfectly with our current strategy and goal of expanding European Energy’s impact in the fight against climate change. The capital injection more than triples our equity, offering us increased opportunities to accelerate our business.”

Takuji Naruse, Managing Executive Officer and Head of Environment & Energy Business Division of Mitsubishi HC Capital, commented: “We are most delightful to enter into this strategic partnership with European Energy. Mitsubishi HC Capital finds significant growth potential in European Energy and room to create synergies. Mitsubishi HC Capital by leveraging our expertise and strengths in the market will work together with European Energy to realize value creation and decarbonization.”

To remind, European Energy is one of the winners of Denmark’s Power-to-X tender, through which the country made available approximately €167.7 million in state support for the production of PtX in the form of green hydrogen.

The tender was held to procure hydrogen produced by using renewable energy sources and is part of Denmark’s goal to reach between 4 and 6 GW of electrolysis capacity by 2030 and its PtX strategy, released in 2021, according to which the country’s offshore wind resources provide good conditions for the production of green hydrogen, which requires large amounts of green electricity.