Netherlands-based pension giant ABP and OMERS, the defined benefit (DB) plan for municipal employees in Ontario, Canada, has joined forces to acquire Dutch energy infrastructure business Kenter, in a deal which reportedly values the firm at close to €700 million ($764 million).
Kenter is an energy infrastructure business providing medium-voltage infrastructure – including transformers and switchgear – and meters to over 25,000 commercial and industrial business customers in the Netherlands and Belgium. It is a subsidiary of Dutch utility consortium Alliander.
The transaction is set to be executed by APG Asset Management on behalf of ABP, which with €469 billion in available assets is the largest pension fund in the Netherlands, and OMERS Infrastructure, which on behalf of OMERS, has AUM of C$124 billion ($94 billion) and is one of the largest pension plans in Canada.
While details of the deal have not been disclosed, Reuters has reported that the transaction is valued at €700 million, including debt.
This is the second time the two pension funds have collaborated on renewable energy infrastructure projects, having closed an investment in rooftop solar and EV charging firm Groendus at the end of last year.
Jan-Willem Ruisbroek, head of global infrastructure investment Strategy at APG, said: “The energy transition is propelling the electrification trend in the Netherlands and across Europe, aligning with the ambitious climate targets set by the EU. To ensure its success, substantial investments in essential electrical infrastructure such as transformers, meters, batteries and electric vehicle chargers are imperative for our society. By investing in Kenter, building upon our previous venture with Groendus last year, we intensify our efforts.”
Alliander announced its intention to sell Kenter at the end of last year in its annual report, citing the impact of a new Energy and Heating Act as a reason for the sale. “The new Heating Act proposes, among other things, that collective district heating networks will pass into public hands, possibly resulting in an important role for network operators” the firm stated, adding that Kenter would have better opportunities for growth outside Alliander.
Alliander’s 2022 balance sheet lists its assets held for sale at €162 million, compared to €16 million in 2021, suggesting that Alliander had valued Kender at around €146 million. The transaction is expected to close in Q4 of 2023.
