Sev.en Energy signs agreement to acquire a 50% stake in InterGen
London, Prague – February 1st, 2019 the prominent Czech industrial player, Sev.en Energy, signed an agreement to acquire a 50% stake in the multinational energy company, InterGen N.V. from Canada’s Ontario Teachers’ Pension Plan (Ontario Teachers’).
InterGen is one of the leading independent power generators with assets in the UK and Australia. The company owns and operates three combined-cycle gas-fired power plants in the UK and has a stake in two, modern coal-fired power stations in Australia. The total installed capacity of the portfolio exceeds 4,000 MW as well as a 300 MW open-cycle gas-fired power plant currently under construction and expected to be completed in 2019. Furthermore, InterGen has several other energy projects in development.
"InterGen has a very strong position in both the UK and Australian markets. We believe that conventional energy will remain a significant pillar in the energy mix of these markets. We see great potential for further development of InterGen's production base," says Alan Svoboda, head of international expansion for Sev.en Energy.
The other half of InterGen's shares are owned by major Chinese energy companies China Huaneng Group and Guangdong Yudean Group. "We look forward to working with the other shareholders and the entire InterGen team. We are convinced that together we will achieve further growth, as well as good returns on our investments," adds Alan Svoboda.
Last year, Sev.en Energy announced an ambitious international expansion program. The Group currently operates two lignite coal mines and four coal-fired power plant units in the Czech Republic. It employs more than 3,200 people. The value of consolidated assets (prior to the acquisition) is more than €850 million. The acquisition of a 50% stake in InterGen is an important step for Sev.en Energy on its path to international expansion. Closing of the transaction will take place over the course of the next few months, subject to the consent of the relevant EU and Australian authorities.
Ontario Teachers' is a defined-benefit plan which invests and administers the pensions of the province of Ontario's 323,000 active and retired teachers. It had net assets of C$193.9 billion at June 30, 2018.
On the legal side, Sev.en Energy was advised by Dentons offices in Prague, London, Sydney and Amsterdam, with Petr Zakoucky, Charles July, Kym Livesley and David Griston as the leading partners, supported by Paul Scott, Barbora Obracajova, Urvashi Seomangal and David Shearer as the team coordinators. In terms of financial due diligence, Sev.en Energy was advised by an Alvarez & Marsal team, led by Donatien Chenu with support from Camille Peyre and A&M’s team in Paris and London offices.