Cube Infrastructure Managers, a Luxembourg-based infrastructure investor, has agreed to take over the Czech activities of Germany energy firm MVV Energie AG for an undisclosed amount. The transaction would be done through Cube IM’s “Cube Infrastructure Fund III” brownfield fund.
The Cube Infrastructure Fund III was registered in Luxembourg as a Reserved Alternative Investment Fund in June 2021. As a a “brownfield fund” it invests in existing production facilities to launch a new production activity.
In recent years, Cube IM has raised 3.9 billion euro across four European-focused funds including its brownfield Cube I, II and III funds and its greenfield telecoms focused Connecting Europe Broadband fund.
Adding 78 million in revenue
The MVV Energie CZ group provides energy services to customers in 15 cities and is among the leading heat producers and distributors in the Czech Republic. The group is active in electricity generation, waste to energy production, energy consulting, water management and the provision of electronic communication services. In 2021, the group sold about 690 GWh of heat and about 170 GWh of power in the Czech Republic, generating 78 million euros in revenue. MVV Energie CZ employs about 500 people.
“This investment reflects Cube’s commitment to delivering sustainable infrastructure assets to local communities and authorities,” said Saket Trivedi, managing director of Cube IM. “We look forward to helping the company grow and develop its portfolio as it continues to provide future-proof energy solutions to household and commercial clients in the coming years.”
Cube IM describes itself as an independent, mid-market infrastructure investor “joining deep sector knowledge with operational and financial expertise”. Founded in 2007, it said it has used its operational and financial abilities to develop and transform essential local infrastructure needs in areas including fibre, district heating, mobility and EV charging.
Cube said it “uses a hands-on approach to invest in small and mid-sized infrastructure below the radar of larger investors, in order to deliver sustainable infrastructure assets to local communities and authorities.”
In a press release, Cube IM and MVV cautioned that the transaction remains subject to customary closing conditions including the consent of MVV’s Supervisory Board. It is expected to be completed in Q4 of 2022.