Partners Group Considers Sale of Formosa Solar Amid Rising Deal Activity

Key Takeaway

• Partners Group is exploring the sale of Formosa Solar, valued at $300-$400 million, with Bank of America advising.
• Sale discussions are early and may result in Partners Group retaining the company, reflecting strategic portfolio considerations.
• The renewable energy sector in Asia is experiencing increased deal activity, with transactions rising to $9.9 billion this year.

Potential Sale of Formosa Solar

Partners Group Holding AG, a Swiss private equity group, is reportedly considering the sale of Formosa Solar Renewable Power Co., a significant player in Taiwan's solar energy sector. The company, which specializes in managing and investing in solar photovoltaic projects, could be valued between $300 million to $400 million in the potential divestment. Bank of America Corp. has been enlisted to assist with the sale process, highlighting the strategic moves being considered by Partners Group to possibly realign its investment portfolio.

Early Stage Deliberations

The discussions regarding the sale of Formosa Solar are still in the preliminary phases, with no definitive decision made. The possibility remains that Partners Group might choose to retain the business, underscoring the uncertainty and fluid nature of such strategic considerations in the investment world. This indecision reflects the complex decision-making process inherent in managing a vast portfolio of assets, particularly in the dynamic renewable energy sector.

Partners Group and Formosa Solar Background

Since its inception in 2016, Formosa Solar has benefited from the backing of Partners Group, which manages approximately $147 billion in assets globally. This support underscores the significant role that private equity firms like Partners Group play in fostering the growth of renewable energy enterprises. Formosa Solar's operations extend beyond solar project management to include power machinery manufacturing, maintenance, and inspection, indicating a diversified business model within the renewable energy industry.

Renewable Energy Investment Trends

The renewable energy sector in Asia has seen a notable increase in deal volume, with transactions totaling $9.9 billion so far this year. This represents a rise from the $8.6 billion recorded over the same period last year, according to data compiled by Bloomberg. This trend highlights the growing investor interest and confidence in alternative energy assets, signaling a positive outlook for companies like Formosa Solar that are positioned within this burgeoning market.