EQT Said to Explore Waste Energy Unit Sale With Morgan Stanley

Swedish buyout firm EQT Partners AB is exploring a sale of EEW, a German energy-to-waste business, after receiving interest from potential buyers from Europe, the U.S. and Asia, according to people familiar with the matter.

EQT is working with Morgan Stanley to weigh options for the business, the people said, asking not to be identified as the information is private. A formal sale process may begin in the third quarter, they said, adding that no final decision has been made on the business.

German utility EON SE sold 51 percent of EEW to EQT in 2012 in a sale that valued the business at about 1 billion euros. The Swedish buyout firm currently holds a 84 percent stake in EEW, according to information on its website. A sale of the business may attract interest from both strategic investors and international infrastructure funds seeking stable returns on their investments, the people said.

EEW, which reported revenue of 539 million euros ($587 million) in 2014, operates 19 waste incineration plants, which produce electricity, distribute heat and process steam, according to EQT’s website.

Representatives for EQT and Morgan Stanley declined to comment.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE