3i Infrastructure PLC Further investment in ESVAGT (5388U)
December 03 2021 - 5:34AM
UK Regulatory
TIDM3IN
RNS Number : 5388U
3i Infrastructure PLC
03 December 2021
3i Infrastructure plc invests a further GBP268 million in
ESVAGT
3 december 2021
3i Infrastructure plc ("3i Infrastructure" or the "Company")
announces that it has agreed to acquire the stake in ESVAGT owned
by its co-investor AMP Capital. This will result in 3i
Infrastructure holding 100% of the equity in ESVAGT. This further
investment is expected to be GBP268 million. Completion is subject
to certain third party consents and is expected to take place in
the first quarter of 2022.
In its half year results announcement, 3i Infrastructure said
that a strategic review of its holding in ESVAGT was in progress
and that as part of that review, offers had been invited. However,
the Company retained the options of continuing to hold its 50%
stake, to sell, or to offer to buy the AMP Capital stake. Binding
offers for 100% of the equity were received but not at a compelling
price for 3i Infrastructure, and so the Company elected to offer to
buy the AMP Capital stake.
ESVAGT is the market leader in the fast growing segment of
service operation vessels ("SOV") for the offshore wind industry.
The company is also a leading provider of emergency rescue and
response vessels ("ERRV") and related services to the offshore
energy industry in and around the North Sea and the Barents
Sea.
Since acquiring ESVAGT in 2015, 3i Infrastructure and AMP have
supported management in driving the company's shift in strategic
focus towards SOVs and becoming a key enabler of offshore wind
operations in Europe. SOVs represented less than 10% of earnings at
acquisition, but have grown to provide the majority of ESVAGT's
contracted earnings today. During this period, ESVAGT has delivered
six new SOVs, and has entered into a joint venture with Crowley in
the USA to support the emerging offshore wind energy market
there.
The offshore wind market, and hence demand for SOVs, is expected
to grow strongly over the coming years, as many European
governments and US states have set ambitious offshore wind
build-out targets as part of their wider net-zero emissions
plans.
Richard Laing, Chair of 3i Infrastructure, commented:
"ESVAGT's transition into a market leader in European offshore
wind has been a major achievement. We believe that it is
well-placed to benefit from continuing attractive growth prospects
in the wind sector and we are delighted to be acquiring 100% of the
business."
Phil White, Managing Partner and Head of Infrastructure, 3i
Investments plc, Investment Manager of the Company, added:
"We very much look forward to continuing to work with CEO Peter
Lytzen and the ESVAGT team to take advantage of the future growth
of the offshore wind market, both in Europe and the US."
-ENDS-
For further information, contact:
Thomas Fodor Tel: +44 207 975 3469
Investor enquiries Email: thomas.fodor@3i.com
Kathryn van der Kroft Tel: +44 20 7975 3021
Media enquiries Email: kathryn.vanderkroft@3i.com
Notes to editors:
3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company and an approved UK Investment Trust, listed on
the London Stock Exchange and regulated by the Jersey Financial
Services Commission. The Company's purpose is to invest responsibly
in infrastructure, delivering long-term sustainable returns to
shareholders and having a positive impact on its portfolio
companies and their stakeholders.
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 Manager of 3i Infrastructure
plc.
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END
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