Mitsubishi further expands into green power with stake in European Energy

Financial service firm Mitsubishi HC Capital has agreed to buy into renewables developer European Energy, and seeks to become a strategic partner of the Danish company.

The gross proceeds of the deal will provide the developer with a capital injection of about €700m ($763m) through the issuance of about 72 million new shares to which Mitsubishi HC Capital will subscribe. Mitsubishi HC Capital will also purchase about 3 million shares from the three major shareholders in European Energy.

Together, this will make Mitsubishi HC Capital the second largest shareholder in European Energy, holding 20% of the share capital and voting rights.

Mitsubishi HC Capital’s “international presence and strategic mindset are key to boosting our company’s growth, especially with the increasing demand for capital in this industry,” said European Energy chairman Jens Due Olsen.

“This transaction will further enhance our role in the green energy transformation.”

European Energy CEO Knud Erik Andersen added that the Japanese financier as part of the company’s shareholder group aligns with its expansion strategy.

“The capital injection more than triples our equity, offering us increased opportunities to accelerate our business,” Andersen said.

European Energy has a renewables project pipeline of more than 60GW across 28 countries. The developer is also a pioneer in power-to-x projects and currently is building one of the world’s largest e-methanol plants.

“Mitsubishi HC Capital finds significant growth potential in European Energy and room to create synergies,” managing executive officer Takuji Naruse said.