Ignitis Group sells one share of Vilnius CHP to Miesto Gijos

Deal Analysis

Ignitis Group's sale of a single share of Vilnius CHP to Miesto Gijos, making the latter a minority shareholder, formalizes a pre-existing cooperation agreement established in 2017 with Vilnius City Municipality. While the financial value of the transaction remains undisclosed, the deal signifies a step towards solidifying the partnership structure outlined in the original agreement. This move likely aims to streamline operational control and potentially facilitate future collaborative projects within the Vilnius CHP plant. The transaction, though seemingly small in scale (involving only one share), is notable due to the involvement of Ignitis Group, a major international energy company in Lithuania, and the pre-existing cooperation agreement with Vilnius City Municipality. The deal's impact extends beyond a simple transfer of ownership, potentially influencing the future direction and efficiency of the Vilnius CHP plant. The lack of disclosed value and specific project details limits a full assessment of its long-term implications, but it signals a continued commitment to the established partnership.

Involves Ignitis Group, a major international energy company.
Formalizes a cooperation agreement established in 2017.
Miesto Gijos becomes a minority shareholder in Vilnius CHP.
Transaction value remains undisclosed.

Market Context: The deal occurs within Lithuania's biomass energy sector, specifically concerning a combined heat and power (CHP) plant. This sector is likely driven by the country's energy policy and goals related to renewable energy and energy independence.

Source Intelligence

KEY DETAILS

The value of 49% of Vilnius CHP’s shares acquired by Quaero Capital amounts to EUR 120 million. It consists of EUR 110 million fixed and EUR 10 million conditional (earn-out) payment, which depends on the successful results of Vilnius CHP. The European Commission (EC) has allocated EUR 138 million support for this project.

“

Deal Size

The value of 49% of Vilnius CHP’s shares acquired by Quaero Capital amounts to EUR 120 million.

“

Location

Vilnius Combined Heat and Power Plant

“

Financials

Under the terms of the agreement, the value of 100% of Vilnius CHP’s equity amounts to EUR 244 million. In total, the Group into Vilnius CHP has invested EUR 52 million into Vilnius CHP equity.

“

Announcement

Date 25 February 2026

“

Signing

cooperation agreement signed on 29 May 2017

“

COD

The construction project of the Vilnius CHP was completed on 23 May 2024.

“

Expected Close

The transaction is expected to be completed in the second quarter of 2026, subject to regulatory approvals from Lithuanian and Latvian authorities and other closing conditions.

PARTIES MENTIONED IN SOURCE

I

Ignitis Group seller

"Ignitis Group – attracted foreign equity investment to Vilnius CHP"

M

Miesto Gijos buyer

"Ignitis Group has agreed to sell one share of Vilnius CHP to Miesto Gijos"

Q

Quaero European Infrastructure Fund III buyer

"The Group has agreed with a Quaero European Infrastructure Fund III (QEIF III), a fund managed by Quaero Capital SA (Quaero Capital), to sell 49% stake in UAB Vilnius Cogeneration Power Plant (Vilnius CHP) managed by the Group."

Q

Quaero Capital SA manager

"The Group has agreed with a Quaero European Infrastructure Fund III (QEIF III), a fund managed by Quaero Capital SA (Quaero Capital), to sell 49% stake in UAB Vilnius Cogeneration Power Plant (Vilnius CHP) managed by the Group."

V

Vilnius City Municipality N/A

"based on the cooperation agreement signed on 29 May 2017 between Vilnius City Municipality, Group (then AB “Lietuvos energija“) and Miesto Gijos (then AB „Vilniaus šilumos tinklai“)."

high quality Enriched Feb 27, 2026