Information on the Target

MVV Energie CZ, a wholly owned subsidiary of MVV Energie AG, is a prominent energy provider in the Czech Republic, serving approximately 15 cities. The company specializes in the production and distribution of heat, offering high-performance electricity generation, waste-to-energy solutions, energy consulting, water management, and electronic communication services. With a workforce of nearly 500 employees, MVV Energie CZ is a significant contributor to the local economy. In 2021, the company achieved approximately 690 GWh in heat sales and 170 GWh in power sales, generating revenues of €78 million.

Ralf Klöpfer, Executive Board Member of MVV Energie AG, stated, "MVV is proud of the development of MVV Energie CZ since our entry into the Czech market. We have notably advanced in minimizing the carbon footprint of our operations and established a leading position in energy efficiency. This aligns with our strategy to become climate neutral by 2040, as well as climate positive thereafter. We are confident that Cube will serve as the right long-term owner to further our objectives for MVV Energie CZ."

Industry Overview in the Czech Republic

The Czech Republic's energy sector has undergone significant transformation in recent years, moving towards more sustainable and environmentally friendly practices. The government has prioritized reducing greenhouse gas emissions and increasing the share of renewable energy sources. This shift is driving investment in new technologies for energy efficiency and management. Czech energy firms are adapting to these changes by re-evaluating their operational strategies and investing in cleaner energy sources.

The country is poised to modernize its infrastructure to meet European Union standards for sustainability. Investments in heating and electricity sectors are not only focused on traditional energy supply but also on enhancing energy efficiency and promoting the use of renewable sources. Companies are exploring innovative solutions to ensure they remain competitive while contributing to ecological objectives.

Additionally, the Czech energy market is characterized by its dependency on a diverse energy mix, which includes coal, nuclear, and growing contributions from renewables such as wind and solar power. The interplay of these sources is critical to ensuring energy security and meeting future demand effectively.

The regulatory environment continues to evolve, encouraging investments in cleaner technology and energy efficiency projects. This creates opportunities for local and foreign investors alike, as the sector pivots toward a more sustainable model, thus enhancing the scope for infrastructure development and innovative business opportunities.

The Rationale Behind the Deal

The divestment of MVV Energie CZ aligns with MVV’s strategic goal of focusing on core operations while also seeking a partner who can accelerate the growth of its Czech subsidiary. By selling to Cube Infrastructure Managers, MVV aims to ensure that its investment in energy efficiency and carbon reduction continues under a committed owner. Cube’s expertise in sustainable infrastructure investment makes it well positioned to enhance the operational and strategic trajectory of MVV Energie CZ.

This transaction not only strengthens MVV’s balance sheet but also opens pathways for further investment and innovation within the Czech energy market. The deal allows MVV to concentrate on its climate goals while providing Cube with the opportunity to leverage MVV Energie CZ's established market presence and expertise.

Information About the Investor

Cube Infrastructure Managers is an independent European mid-market infrastructure investor, specializing in sustainable infrastructure assets. With an emphasis on delivering value and promoting community benefits through its investments, Cube boasts a portfolio that spans various sectors, including energy, social infrastructure, and telecommunications.

Under the leadership of Managing Director Saket Trivedi, Cube seeks to invest in projects that align with the principles of sustainability and community engagement. The firm’s approach focuses on enhancing operational efficiencies and driving growth within its portfolio companies, making MVV Energie CZ a strategic addition to its investments in the energy sector.

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The acquisition of MVV Energie CZ by Cube Infrastructure Managers is deemed a good investment for several reasons. First, MVV Energie CZ has a well-established position within the Czech energy market, serving a substantial customer base and with a proven track record of generating revenue. This existing market share presents Cube with immediate cash flow and an opportunity to capitalize on future growth.

Furthermore, the strategic focus on sustainability aligns with global energy trends and regulatory shifts toward greener solutions. As public demand increases for renewable energy and energy-efficient services, MVV Energie CZ is uniquely positioned to benefit from these developments. The expertise of Cube in managing sustainable infrastructure will likely lead to continued operational improvements and innovations within the company.

Additionally, Cube's commitment to supporting MVV’s existing strategies in reducing carbon emissions ensures that investment in high-performance, sustainable projects can thrive. This aligns with long-term industry trends favoring environmentally responsible practices, thus ensuring the resilience of MVV Energie CZ in the evolving energy landscape.

In summary, this strategic acquisition provides Cube with a promising opportunity to enhance its portfolio, contributing positively to its sustainability goals while simultaneously facilitating the continued development of MVV Energie CZ in a rapidly changing market.

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