The energy industry is undergoing a change. The traditional business model of most energy suppliers has been severely affected by the tightened market conditions, changes in the regulatory framework and the technological progress. The transformation of the sector is observable in various financial aspects and in particular in the increased transaction activities.
Energy supply is becoming increasingly decentralized and complex. Energy supply companies are meeting these challenges by driving innovation through digitization. The primary aim of digitization efforts is to establish fast, efficient, and automated processes. The energy sector is intensively addressing the topics of Internet of Things, breaking down industry boundaries and increasing innovation through cultural change. An example of this is the founding of Evolution AG by 6 utility companies.
The investment priorities of energy supply companies and the targeted decarbonization lead to a concentrated demand for renewable energy projects. This situation is intensified by the lively investment activities of financial investors. Due to the limited investment opportunities and the small number of attractive projects, domestic prices are rising sharply. Accordingly, a large amount of funds continues to flow into investment projects abroad.
With the amendment of the Electricity Supply Act, the Federal Council wants to open the electricity market for all customers and, by revising the Energy Act, further improve the investment incentives for renewable energies and secure the supply of electricity. The federal government is currently developing a long-term climate strategy to achieve the climate target for 2050 (net emission reduction to zero), which should also consider the role of negative emission technologies. The gas sector is to receive legal regulation in the Gas Supply Act, which provides for partial market opening.
In June 2020, the three majority shareholders Schweizerische Kraftwerkbeteiligungs-AG, EOS Holding SA and the consortium of Swiss minority shareholders achieved a 90.41% stake in Alpiq Holding AG. Thus, the conditions for a squeeze-out merger were fulfilled and the merger was successfully completed after approval by the Annual General Meeting. Two shareholders have each filed compensation review proceedings against the squeeze-out merger.
Confirming the trend towards innovation and digitization, in October 2020 BKW acquired Sigren Engineering AG, based in Winterthur. Sigren Engineering is a leading actor in the growth areas of smart buildings and smart infrastructure. Through the acquisition, BKW Building Solutions strengthens its expertise in the automation of buildings and infrastructure.
In August 2020, ewz took over the Stigafjellet wind farm built in Norway by the Swedish energy company Eolus Vind. With a total capacity of 30 megawatts, the wind farm achieves an annual production of 117 GWh of electricity, enabling ewz to increase its production from wind power by 20%.
On 13 September 2022, AMAG Group announced the acquisition of the business unit Helion, which specializes in photovoltaic systems, heat pumps and e-mobility, from Bouygues E&S InTec Schweiz AG. IFBC supported AMAG as Financial Advisor in this transaction throughout the entire acquisition process. Among other things, IFBC was responsible for the valuation, carried out the financial due diligence and assisted in the contract and purchase price negotiations.
As Switzerland’s largest car importer, AMAG operates a nationwide sales and dealership network with around 6’500 employees for high-quality automobile brands such as Audi, Seat, Skoda, Cupra and Volkswagen as well as Bentley and Porsche. In addition, AMAG Group offers its customers a broad spectrum of complementary services relating to the mobility of today and tomorrow.
IFBC was mandated by Energiedienst Holding AG to perform the financial due diligence of Alectron in the context of the successful acquisition and to prepare a due diligence report.
Alectron AG is a solar company operating in central Switzerland, offering its commercial and private customers energy concepts, the installation of photovoltaic systems, storage solutions and services.
Energiedienst Holding is a German-Swiss energy supplier. In addition to the electricity production from hydropower, the company offers various services in the fields of photovoltaics, e-mobility and sustainable heat solutions to its clients.
In order to finance the shareholding in the run-of-river power plant Ryburg-Schwörstadt, regional energy supplier AEW Energie AG successfully placed a fixed-interest CHF 125 million debut bond on the Swiss capital market as per 1st June 2022. The funding significantly contributes to the expansion of their own production in the field of sustainable regional power. In addition, a credit facility was established with a Swiss bank.
IFBC supported AEW as a financial advisor during the entire financing process, including the development of the financing concept, the negotiations with potential investors and finally the successful closing of the credit facility and the bond issuance.
AEW Energie AG is an independent company of the Canton of Aarau. With its reliable energy supply (electricity and heating/cooling), AEW makes a significant contribution to the attractiveness of the area and the quality of life in the region.
IFBC supported the Canton of Graubünden as exclusive Financial Advisor in the acquisition process of a shareholding in Repower AG from Axpo. The expansion of its shareholding took place against the background of the cantonal hydropower strategy.