Infracapital agrees the sale of GGE

Infracapital, the Infrastructure equity investment arm of M&G Plc, has agreed the sale of its 100% stake in the Slovakian assets of GGE a.s. (“GGE”) to UNICAPITAL ENERGY s.r.o., part of CREDITAS Group. GGE produces and distributes heat and electricity in Slovakia. Its network covers 213 MWt capacity in heat and over 70 MWe in electricity alongside 110km of district heating networks infrastructure. Infracapital will retain ownership of GGE’s subsidiary Duon, the Polish LNG and grid gas distribution & supply business.

Infracapital acquired the business in 2015, and has since transformed the business, delivering numerous successful initiatives including:

  • Significantly improving the profitability of the business by more than doubling EBITDA in the last five years
  • Installed a strong management team to enhance the performance of the business, including significantly de-risking through the introduction of risk hedging rules to address volatility in commodity prices
  • Pivoted towards a more commercial strategy to generate additional revenues and increasing ancillary services volumes provided to the grid

The transaction is subject to merger control clearance.

Mark Chladek, Head of Brownfield at Infracapital, said: “The management team has been instrumental in the transformation of GGE over the nine years of Infracapital’s ownership. We would like to thank them for their dedication and the fantastic EBITDA growth that has been achieved. The business is in great shape and is now strongly positioned as a key player in the Slovakian energy market. We wish the new owners every success in the future.”

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About Infracapital

Infracapital invests in, builds and manages a diverse range of essential infrastructure to meet the changing needs of society and support long-term economic growth. We take an active role in all of our investments, whether nascent or large, to fulfil their potential and ensure they are adaptable and resilient. Our approach creates value for our investors, as we target investments with the scope for stable and sustainable growth. Our portfolio companies work closely with the communities where they are based, to the benefit of all stakeholders. Infracapital is well positioned to deliver the significant investment required to help build the future. The founder-led team of experienced specialists has worked with more than 60 companies around Europe and has raised and managed over €9 billion of client capital across seven funds. Infracapital is part of M&G Plc, an international savings and investments business, managing money for around 5 million retail customers and more than 900 institutional clients in 38 offices worldwide. Total assets under management are £343.5 billion (as at 31 December 2023).

About GGE

GGE is one of the leading Slovak energy groups, engaged in the production and distribution of heat and electricity with gas powered generation assets and district heating networks across six locations in Slovakia. GGE operates an in-house supply and trading arm, sourcing all fuel needed for heat and power production and supplying electricity and gas to external customers. The Group also provides complementary balancing and ancillary services to the grid operator and other generators.

About UCED, the energy division of CREDITAS Group

CREDITAS Investment Group has been operating in the field of energy since the year 2013. The group´s energy division UCED is the fourth largest energy distributor in the Czech Republic. Besides energy distribution, the division has been focussing on energy production, heat generation and the provision of balancing services.

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