Inside Information: YIT to sell the renewable energy business to Eolus
YIT Corporation Inside Information 5 December at 4:15 p.m.
Inside Information: YIT to sell the renewable energy business to Eolus
YIT has signed an agreement on the sale of YIT Energy Oy, the renewable energy business, to Eolus Vind AB. The sale includes YIT’s project development portfolio of wind and solar power and the personnel working with the business. As announced on 20 June 2023, the renewable energy business has been under a strategic review. The transaction is expected to be carried out in the form of a share deal by 31 December 2023 at the latest. Once the transaction is completed, YIT no longer has own activities in wind and solar power development projects.
The transaction consists of a fixed and a variable purchase price. The fixed purchase price is EUR 25 million, which will be paid in three instalments. The first instalment of EUR 10 million will be paid at closing and EUR 15 million in two instalments during 2024 and 2025. The variable purchase price is defined based on project sales and completed projects and it amounts to EUR 0–75 million. The variable purchase price will be determined by the end of 2032. YIT estimates that the variable purchase price weighted with probabilities of the project development portfolio is EUR 23 million. At closing of the transaction, YIT records an estimated total purchase price of EUR 48 million and an estimated gain on sale of EUR 46 million. The impact of the renewable energy development business on YIT’s results has been minor during 2022–2023.
The team of 16 people working with the wind and solar power development portfolio will transfer to Eolus Group in connection with the transaction. Listed on Nasdaq Stockholm, Eolus is one of the leading developers of renewable energy in the Nordics.
”Eolus has over 30 years of experience in developing the renewable energy business. The company has strong experience and excellent capabilities in taking the renewable energy business forward, which is positive both for our partners as well as personnel. Our team has done an excellent job in building the project development portfolio. Eolus can develop the business forward with more extensive resources and support the future growth. I’m pleased that the strategic review of the business has been successfully completed through this transaction. The deal strengthens our financial position and improves our focus on our core businesses,” said Tuomas Mäkipeska, CFO, YIT Corporation.
“We are delighted to have been entrusted to take over the successful renewable energy business of YIT. Eolus’s experience, long-term commitment, and staying power, together with the competence in the YIT team, creates excellent conditions for development and realization of the projects in the best possible way," said Per Witalisson, CEO of Eolus.
The gain on sale is reported in EBIT adjusting items and thereby, it has no effect on YIT’s guidance for 2023.
The sale is part of YIT's transformation program, announced on 10 February 2023. One of the objectives of the program is to improve YIT’s capital efficiency. The company continues the strategic review, announced on 20 June 2023, regarding certain assets and operations. The review concerns assets and operations such as YIT’s infrastructure operations in Sweden, and selected investments, including YIT’s ownership stake in Tripla Mall. YIT has the potential to release approximately EUR 400 million of capital during the years 2023–2024.
For further information:
Tuomas Mäkipeska, CFO, YIT, media enquiries through Group Communications, tel. +358 44 743 7536, [email protected]
Maija Taimi, SVP, Communications, YIT, tel. +358 50 487 1561, [email protected]
More information about Eolus:
Eolus is a leading developer of innovative and customized renewable energy solutions. We offer attractive and sustainable investments in the Nordics, the Baltics, Poland and the USA. From development of green field projects to construction and operation of renewable energy assets, we are part of the entire value chain. For over three decades we have worked for a future where everyone can lead a fulfilling, yet sustainable life. Today, our project portfolio includes more than 25 GW wind, solar and energy storage projects.
Eolus – shaping the future of renewable energy. Eolus’s Class B share is listed on Nasdaq Stockholm. www.eolusvind.com
YIT Corporation
YIT is the largest Finnish and a significant North European development and construction company. We develop and build sustainable living environments: functional homes, future-proof public and commercial buildings, infrastructure for smooth mobility, and renewable energy solutions to benefit the climate. We employ around 5,000 professionals in nine countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2022 was EUR 2.4 billion. YIT Corporation's share is listed on Nasdaq Helsinki. Read more: www.yitgroup.com
