Mitsubishi HC Capital to acquire 20% stake in European Energy

Mitsubishi HC Capital is all set to acquire a 20% stake in European Energy.

According to the company, Mitsubishi HC Capital will subscribe to around 72m new shares in European Energy. This will be held under a new agreement.

This latest development means that European Energy will have a capital injection of around €700m from the issuance of new shares.

Meanwhile, Mitsubishi HC Capital will also purchase around 3m shares from the three major shareholders in European Energy. With this, it is said that the company will be the second largest shareholder in European Energy.

As per the companies, the latest partnership will boost European Energy’s capital base and growth potential. The transactional procedure is likely to be completed in the first half of 2024.

“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,” Jens Due Olsen, Chair of the Board of Directors at European Energy, was quoted in a statement.

Meanwhile, Knud Erik Andersen, CEO and co-founder of European Energy, was quoted, “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.”

The duo has pledged to realize value creation and decarbonization through the latest partnership.