We advised the infrastructure fund Quaero European Infrastructure Fund III, managed by Quaero Capital SA, on the acquisition of a 49% stake in the Vilnius Combined Heat and Power Plant from Ignitis Group.
The Vilnius Combined Heat and Power Plant (CHP) – one of the most advanced facilities of its kind in Europe – is capable of covering up to 50% of the city’s district heating demand and generating enough electricity to supply approximately 230,000–300,000 households. CHP has an electrical capacity of up to 93 MW and a thermal capacity of up to 239 MW. The plant uses post-sorting, non-recyclable municipal waste and locally sourced renewable biomass as fuel.
Quaero Capital is an independent fund management company headquartered in Geneva, with offices in Paris, Zurich, Luxembourg and London. The company manages EUR 3.8 billion in assets and invests in energy, water, social, digital, telecommunications and transport infrastructure projects across Europe. Its investor base consists of institutional investors, including pension funds, insurance companies and the European Investment Bank.
Under the agreement reached with Ignitis Group, the value of 100% of CHP’s equity amounts to EUR 244 million. The value of the 49% stake to be acquired by Quaero Capital is EUR 120 million, of which EUR 110 million is a fixed purchase price and EUR 10 million is a conditional earn-out payment depending on CHP’s performance. This represents one of the largest foreign investments in Lithuania in recent years.
The share purchase agreement is expected to be signed by the end of March 2026, subject to approval by the Ignitis Group General Meeting of Shareholders. The transaction value is EUR 120 million. Completion is expected in Q2 2026, following receipt of the required approvals from Lithuanian and Latvian authorities and fulfilment of contractual conditions.
Our team and involvement
Sorainen is acting as the lead legal advisor to Quaero Capital and is assisting the client on all aspects of the transaction, including legal and tax due diligence, drafting transaction documentation, negotiations, as well as advising on regulatory approvals and closing matters.
Our team is led by partner Sergej Butov and senior associate Michailas Molis, and also includes senior associates Aliaksei Vashkevich, Julija Kirkilienė, Povilas Užkuraitis, counsel Andrius Šimkus, Gerda Skirbutienė, associates Danas Šniutė, Radvilė Kvederaitė, Barbora Bernatonytė, Rytė Rečiūnaitė, among others. The team is further supported by partner Monika Mališauskaitė‑Vaupšienė, senior associate Linas Petronaitis, senior associate Marika Grunte and counsel Raminta Karlonaitė‑Durnan, who assist with organising and overseeing the regulatory approvals process.
