Bidders line-up for German waste to energy firm

At least three Chinese firms are in the race to acquire EEW Energy from Waste, a energy-from-waste company based in Germany with activities in Germany, Luxembourg and the Netherlands.

EEW is being sold by EQT, a Swedish private equity group of 18 funds with €29 billion in raised capital.

According to sources, three Chinese state-owned companies are among the bidders interested in EEW:

• Beijing Enterprises Water Group Ltd
• China Everbright International
• Beijing Capital Group
• German utility Steag and Macquarie Group's infrastructure arm
• Several infrastructure groups

The transaction could be closed for a total consideration estimated to be between €1.5 billion (US$1.6 billion) and €2 billion (US$2.13 billion).

EEW operates a total of 19 waste incineration plants, which produce electricity, district heat and process steam. 13 of the 19 plants are majority owned by EEW and six are operated by EEW under long term agreements. 

The waste to energy firm produces around 1,900 GWh of electricity and 3,000 GWh of heat or steam which is typically sold under long term contracts to local utilities or directly to end customers. The revenues come from waste gate fees, plant operatorship services and energy sales. 

Morgan Stanley is advising EQT in the sale process, which according to Reuters, is being heavily promoted in Asia.