JERA Buys Belgium’s Largest Offshore Wind Company For US$1.67 Billion
JERA, a joint venture between Tokyo Electric Power Company Holdings and Chubu Electric Power Company, has entered into a definitive agreement with Virya Energy (Virya) to acquire Parkwind for an equity value of close to US$1.67 billion. Virya is the holding company of Parkwind. JERA said that it will explore the possibility for Virya to reinvest in a minority stake in Parkwind’s Belgian wind farms and discuss collaboration on future opportunities within Belgium.
Parkwind, a European offshore wind developer, owner, and operator, headquartered in Belgium, will provide JERA with a significant platform upon which it will grow its renewables business globally, particularly in offshore wind. Parkwind will accelerate its offshore wind business into markets where JERA has a presence or is already well-positioned to participate in offshore wind development as part of the global decarbonization initiatives and low-carbon fuel production business growth.
“I am very happy to make this announcement today,” said Nathalie Oosterlinck, executive officer of Global Head Offshore Wind at JERA. “Parkwind is a highly attractive investment opportunity and we have been impressed by the company’s strong in-house project development, project delivery, and operational capabilities, management track-record over the years, as well as the quality of its asset portfolio, development pipeline, and joint venture partners. For JERA, the transaction is as much about people as it is about projects and pipeline, all of which Parkwind bring in a material and meaningful way. Parkwind is highly complementary with JERA’s offshore wind strategy and ambitions, and we look to empower Parkwind to deliver on our vision and strategy. JERA has the ambition to significantly advance the expansion of renewable and low-carbon energy on a global scale. There is a strong strategic, cultural, and industrial fit and complementarity between JERA and Parkwind. We look forward to welcoming Parkwind to JERA and creating a global team.”
Under Virya’s ownership, Parkwind became the largest offshore wind platform in Belgium. It currently operates four offshore wind projects in Belgium totaling 771 MW. Aside from these projects, Parkwind is constructing the 257-MW Arcardis Ost project in Germany and is developing a 4.5-GW (net) pipeline of projects in Europe and beyond.
“I am very enthusiastic about our announcement today,” said Paul Tummers, CEO of Virya Energy. “After conducting a competitive sale process over several months, Virya has signed an agreement with the candidate we believe is the best positioned to provide an exciting new home for the business. Parkwind, a leading independent offshore wind platform that has successfully grown over the last 12 years, has a very promising development potential and is supported by highly skilled and capable people. Virya believes JERA will provide Parkwind with the best assets, expertise, and support to ensure the pursuit of its successfully initiated international journey toward a decarbonated future, reinforcing its long-term global potential out of its strong Belgian base. This announcement is a strong milestone in the execution of Virya’s strategy. This contemplated transaction, while being fundamentally triggered by the best interest of Parkwind, will also allow Virya together with its shareholders to increase its focus in ‘fit for purpose energy’ through investments in onshore wind energy, solar energy, and green hydrogen.”
Following completion of the transaction, JERA said it is committed to funding the long-term growth of Parkwind and supporting its domestic and international expansion plan. JERA will bring complementary capabilities and financial support to help the company grow.
“We, as part of Parkwind’s management team and all the Parkwind talents across the platform, are thrilled by this announcement which is opening an exciting new era for our offshore wind activities in Europe and across the world,” said Eric Antoons and François Van Leeuw, co-CEOs of Parkwind. “We are looking forward to benefiting from JERA’s global experience and capabilities to take the company to a next level in terms of growth and expansion potential, with a renewed commitment to be a leading enabler of the energy transition in an environmentally and socially responsible manner. We see a clear alignment on business and people culture between Parkwind and JERA and are convinced that this will allow us to boost the value creation for our future shareholders, our windfarms, our partners, our talented teams, and our planet.”
Closing of the transaction is expected later this year and is subject to the suspensive condition of approval by the competition authorities and other regulatory authorities.
