Equitix, Keppel to take majority stake in Enpal's solar portfolio

German solar energy startup Enpal GmbH is selling a majority stake in its solar portfolio to infrastructure investors Equitix and Keppel Infrastructure Trust, securing over EUR 160 million (USD 175.7m) from the deal to expand its business.

The capital will be provided in several tranches and will help Enpal to enhance its market position in renewable energy systems, the German firm said on Thursday.

In a separate statement, Singapore-based Keppel said the deal will be carried out through a special purpose vehicle, in which the investor will hold a 50% stake and Equitix and its co-investors will own the remaining 50%. The vehicle will acquire a 90% shareholding in Enpal’s portfolio, with the German company keeping the remaining 10%.

Equitix will pay EUR 109 million for 45% of the total portfolio, which includes 60,000 solar photovoltaic (PV) systems across Germany with a projected combined generation capacity of 585 MW.

The acquisition of the portfolio will take place in four phases. The first part covers 53,500 systems and is expected to close by the end of 2023. The remaining three phases, comprising over 6,500 systems, should be completed by the end of June 2024.

After completion, Enpal will remain responsible for the maintenance of the PV systems which are leased to households under 20-year contracts.

The latest deal comes after the solar energy startup secured EUR 215 million in a Series D financing round in January. It previously raised EUR 855 million in fresh financing commitments in December 2022, about six months after attracting EUR 70 million in another campaign.

(EUR 1 = USD 1.098)

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