Partners Group transfers Techem stake to its infrastructure fund

[FRANKFURT/MUNICH] German energy firm Techem will remain in the hands of investor Partners Group after its sale to US financial investor TPG fell through in May, the Swiss private equity firm said on Monday (Jul 14), confirming an earlier report.

Partners Group will transfer its majority stake in the heating and water metring services company, valued at 6.7 billion euros (S$10 billion), the same as in the failed TPG deal, to its own infrastructure fund, the company said.

The news confirms a Bloomberg News report earlier on Monday about Partners Group’s plans for Techem.

In terms of company valuation, Techem is the largest deal in Germany so far this year, according to LSEG data.

TPG’s climate investment arm Rise Climate, Abu Dhabi wealth fund Mubadala and the Singaporean sovereign wealth fund GIC – which TPG had brought on board as a co-investor for the initially planned takeover last October – will acquire minority shares, according to the Partners Group statement.

The transaction is set to close in the second half, subject to conditions and regulatory approvals, it added.

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“For us, this means continuity,” Techem CEO Matthias Hartmann told Reuters, adding that nothing would change in terms of strategic direction following the transfer.

Canadian co-investors La Caisse and Ontario Teachers’ Pension Plan (OTPP), which had acquired Techem as part of a consortium led by Partner Group’s private equity business in 2018, are taking the opportunity to exit their stakes.

Techem’s sale to TPG and sovereign wealth fund GIC fell through in May, with the potential buyers withdrawing registration of the 6.7-billion-euro deal with the European Union’s antitrust authorities on May 7.

The European Commission had announced an in-depth review of the takeover, as TPG’s concessions were not deemed sufficient. REUTERS