Irish power-trading firm to be acquired
Dublin-based power trading company Erova Energy is set to be acquired, as sale talks with Japanese corporate giant Mitsui & Co reach an advanced stage, it's understood.
Established in 2015, Erova is owned by its Irish founders Michael Brennan and Fergal O'Donnell, as well as a UK backer and Swiss private-equity firm Seren.
Seren was founded by Edward Morrell and Thomas Bucknall. Mr Morrell is also a director of Erova.
Erova made a pre-tax profit of €5.1m in 2016, off revenue understood to be in the region of €43m. Mr Brennan declined to comment on the sales process when contacted yesterday.
Industry publication 'SparkSpread', which first reported the planned sale to Mitsui, said that advisory firm Jones Lang LaSalle launched a sales process for Erova in the middle of 2017.
Erova directors noted in the company's 2016 accounts that while short-term power trading remains the company's core activity, it expanded to engage in trading for the long-term power and gas market in the UK and is now involved in energy derivatives.
Last year, it was expecting to sign trading agreements with several Irish generators and suppliers, and also became a registered participant in the Dutch and French power grids.
In 2016, the company also made a small investment in an African wind energy project, and initiated a battery storage collaboration project with Queen's University Belfast and a "major Irish corporate".
Seren also has links to Queen's University Belfast.
Seren Technologies, a company that is developing technology to separate rare earth minerals, has been optimising that process at the university.