Partners considering sale of German renewable energy company VSB, sources say By Reuters

By Andrés González, Emma-Victoria Farr and Isla Binnie

LONDON/FRANKFURT (Reuters) – Partners Group is exploring options, including a sale, of German renewable energy company VSB Group, six sources familiar with the matter said.

The Swiss private equity firm has been interviewing financial advisers in recent weeks, the sources said, adding that the sale process could begin in the second quarter.

A sale of VSB could fetch a valuation of up to $2 billion, including debt, two of the sources said, while a third said the value would be between $1 billion and $2 billion.

The sources, who requested anonymity because the matter is confidential, cautioned that a deal is not guaranteed and is subject to market conditions.

Partners Group declined to comment. VSB did not immediately respond to a request for comment.

The possible sale coincides with a drop in the value of renewable assets, although interest in the sector remains high as the European Union requires 42.5% of the bloc's energy to be renewable by 2030.

If the sale goes through, VSB is likely to attract interest from infrastructure and utility funds, two of the sources said.

Utilities and oil companies have been selling renewable assets to sovereign wealth and infrastructure funds, which demand lower returns, to finance the development costs of new projects.

Earlier this week, German renewable energy producer Encavis AG said it was in talks with KKR about interest in a potential transaction.

The partners first invested in 2020 in VSB, which employs 500 people in Germany, Italy, France, Spain, Poland, Romania, Greece, Finland and Croatia, according to its website.

Partners acquired Exus, an international renewable energy development and asset management company, in October and decided to sell VSB rather than merge the two, which was one of the options, one of the sources said.