EQT Plans to Fund EON Energy-From-Waste Buyout With 50% Debt

EQT Partners AB’s infrastructure-investment unit will use debt to fund about 50 percent of the Swedish buyout firm’s purchase of EON AG’s energy-from-waste unit.

“We plan to start formal discussions with banks in January and close the debt financing at the end of February or early March,” Juergen Rauen, an industrial adviser at EQT, said today in a telephone interview.

EON said yesterday EQT agreed to take a 51 percent stake in a venture that will own 100 percent of the energy-from-waste unit. EON, which aborted the sale earlier this year after failing to get high enough bids, will have a 49 percent ownership. The transaction values the unit at about 1 billion euros ($1.3 billion), according to the Duesseldorf-based utility, Germany’s largest.

EQT Infrastructure II plans to contribute its own funds to finance about 50 percent of the value of the unit, according to Rauen.

The unit operates 18 incineration plants with a capacity of about 4 million tons, generating about 2,100 gigawatt hours of electricity and about 2,800 gigawatt hours of heat, according to its website. Sales last year totaled 544 million euros.

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