3i Infrastructure PLC New investment in Infinis (8072N)
October 31 2016 - 2:00AM
UK Regulatory
TIDM3IN
RNS Number : 8072N
3i Infrastructure PLC
31 October 2016
3i Infrastructure plc announces investment in Infinis
31 OCTOBER 2016
3i Infrastructure plc ("3i Infrastructure") has signed an
agreement to invest approximately GBP185m to acquire 100% of
Infinis plc and its subsidiaries ("Infinis") which together own the
landfill gas ("LFG) interests of the Infinis Group. Infinis is the
leading generator of electricity from LFG in the UK.
LFG is a naturally occurring product resulting from the
decomposition of organic matter in landfill sites. By extracting
LFG from landfill sites, Infinis fulfils an important role in
helping waste management companies meet their environmental
compliance obligations. As Infinis uses the collected LFG to
generate power, it not only abates the global warming impact of the
methane emissions but also provides an efficient and secure source
of power generation to local communities.
As at June 30 2016, Infinis had 121 operating sites and 7
outsourced sites geographically dispersed across the UK and had
power generation installed capacity of over 300MW at its sites.
3i Infrastructure is purchasing Infinis from the Infinis Group,
one of the UK's largest generators of renewable electricity and in
addition to the LFG electricity business, includes onshore wind.
The Infinis Group is 100% owned by funds managed by Terra Firma, a
leading European private equity firm.
On completion of this acquisition 3i Infrastructure will have
invested all of the cash from its capital raise in June 2016. 3i
Infrastructure continues to maintain an efficient balance sheet,
with a good level of ongoing liquidity through its Revolving Credit
Facility.
Completion is anticipated to take place by the end of November
2016.
Richard Laing, Chairman, 3i Infrastructure plc, commented:
"We are very pleased to have acquired Infinis, the largest
landfill gas business in the UK. The strong cash generation profile
of Infinis is a natural fit for 3i Infrastructure and complements
the existing portfolio well."
Ben Loomes and Phil White, Managing Partners and Co-heads,
Infrastructure, 3i Investments plc, added:
"Our long-term plans for the business primarily involve a
continuation of management's existing focus on maximising gas and
electricity yield, driving cost efficiencies, maintaining strong
relationships with landfill owners and other key stakeholders, and
maintaining the highest standards of environmental, health and
safety management. In addition, as gas and electricity output from
the current LFG portfolio declines, we will seek opportunities to
monetise spare engine and grid connection capacity."
-ENDS-
For further information, contact:
Richard Laing Tel: +44 1534 847 410
Chairman, 3i Infrastructure
plc
Thomas Fodor Tel: +44 20 7975 3469
Shareholder enquiries Email: thomas.fodor@3i.com
Toby Bates Tel: +44 20 7975 3032
Media enquiries Email: toby.bates@3i.com
Notes to editors:
About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company, listed on the London Stock Exchange and
regulated by the Jersey Financial Services Commission. The Company
is a long-term investor in infrastructure businesses and assets.
The Company's market focus is on economic infrastructure and
greenfield projects in developed economies, principally in Europe,
investing in operating businesses and projects which generate
long-term yield and capital growth.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc,
is authorised and regulated in the UK by the Financial Conduct
Authority and acts as Investment Adviser to 3i Infrastructure
plc.
About Terra Firma
Founded by Guy Hands in 1994, Terra Firma is one of Europe's
leading private equity firms. Terra Firma specialises in the
acquisition and fundamental transformation of asset-backed
businesses, focusing on investments in transformational private
equity, operational real estate and infrastructure. Since 1994,
Terra Firma has invested over EUR16 billion of equity and completed
transactions with an aggregate enterprise value of EUR48
billion.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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