Morgan Stanley is working with Goldman Sachs to explore the sale of its 50.06% stake in German renewable energy developer PNE, potentially triggering a full takeover bid for the €1.09bn ($1.17bn) company, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as revealing that Goldman Sachs has begun reaching out to potential private equity suitors to assess interest in Morgan Stanley’s majority stake, currently valued at €543m. A structured sales process is expected to commence later in the year, with a possible transaction in the autumn, though discussions remain in early stages, and a deal is not guaranteed.
Under German stock market regulations, acquiring Morgan Stanley’s entire stake would trigger a mandatory takeover offer for the remaining shares of PNE, which specialises in wind and photovoltaic projects and had a project pipeline of 18.9 gigawatts as of the end of 2024.
The move marks Morgan Stanley’s latest attempt to exit its investment in PNE after an earlier sale process in early 2023 failed to materialise. At that time, potential buyers reportedly included EQT and Engie.
PNE’s share price has surged 28% year-to-date, with the stock currently trading at €14.16 per share – more than three times the €4.00 per share that Morgan Stanley paid when it initially invested in the company in 2020.
The company has demonstrated strong financial performance, reporting a 73% increase in 2024 core profit (EBITDA) to €69m. PNE expects EBITDA to climb further, forecasting a range of €110m in 2025 and up to €140m by 2027.
