A 鈧�2.1bn European infrastructure fund managed by First State Investments has bought a majority stake in Estonian energy company O脺 Utilitas.
European Diversified Infrastructure Fund II (EDIF II) has bought an 85% stake in the heating network operator for an undisclosed sum. The management team and supervisory board of Utilitas will hold the remaining 15% share in the company.
Utilitas was founded through a management buyout of Dalkia Estonia in 2012. As well as providing district heating services, Utilitas also generates thermal energy and electricity.
Niall Mills, a partner at First State responsible for infrastructure investments, said: 鈥淲e are delighted that Utilitas is First State鈥檚 inaugural infrastructure investment in Estonia.
鈥淯tilitas鈥� position as the leading operator of a sustainable, reliable district heating network with an increasingly strong focus on renewable energy production is especially attractive to us as a long-term investor.鈥�
Marcus Ayre, a partner, also responsible infrastructure investments at First State, said: 鈥淲e are especially pleased to have reached agreement with Utilitas today following a period of exclusive bilateral discussions.
Utilitas is EDIF II鈥檚 seventh successful investment since its May 2017 series 1 close and brings the total capital committed by EDIF II to over 鈧�1.4bn, Ayre said.
鈥淲e continue to have a strong pipeline of attractive investment opportunities and are looking forward to a busy 2019,鈥� Ayre said.
First State is the international arm of Colonial First State Global Asset Management, the specialist asset management business of the Commonwealth Bank of Australia.
