Danish green energy producer Nature Energy has decided to sell, generating initial interest from energy majors including BP and Shell, according to people familiar with the matter, Bloomberg reported.
According to the report, BlackRock, Global Infrastructure Partners and EQT AB are also considering submitting potential offers for the company. This responds to a surging demand for alternative fuel sources. French utility Engie SA and private equity firm KRR & Co have separately been studying the business, according to sources [who asked not to be identified because the information is private[.
Bloomberg reported that Nature Energy could be valued at €1.96 billion ($2bn) or more in a sale, with first round bids expected in the coming weeks. Nevertheless, there is no certainty any of the suitors will proceed with offers, and Nature Energy may also decide not to sell if its valuation expectations are not met, it said.
Based in the Danish city of Odense, Nature Energy’s facilities treat biomass and convert it into biogas. The company has plans to spend about €5.4bn ($5.5bn) on new plants, mostly in overseas markets, to tap rising demand.
Nature Energy is owned by hedge fund manager Davidson Kempner Capital Management, private equity firm Pioneer Point Partners and Danish pension fund Sampension.
