Quaero Capital, a Swiss investment firm, has reached an agreement to acquire a 49% stake in the Lithuanian company VKJ for €120 million, contributing to the total valuation of VKJ's equity at €244 million. This stake acquisition is part of a strategic initiative to fulfill European Commission mandates that encourage private capital involvement in the management of the company. By implementing this acquisition, Ignitis Group aims to secure a critical €138 million support package from the European Commission aimed at reducing heating costs for the residents of Vilnius.

The agreement indicates that out of the €120 million for the equity acquisition, €110 million is a fixed payment while the remaining €10 million is contingent on VKJ's future performance. This financial structuring reflects the cautious approach of investors in the energy sector, particularly as they seek to balance additional capital infusion with the operational realities of the company. Furthermore, Ignitis Group has previously invested €52 million in VKJ, indicating their long-term commitment to the company's growth and stability.

Importantly, even after the acquisition, Ignitis Group will maintain control over VKJ, holding 51% of the company's shares. This arrangement not only ensures that the group continues to guide the strategic direction of VKJ but also potentially stabilizes the company's future investments and operational decisions, which are crucial for maintaining affordable heating services amid changing market dynamics. The deal serves to strengthen collaboration between the private investment realm and public utility governance, showcasing an evolving landscape in Lithuania's energy sector.