3i Infrastructure plc receives binding offer
for its stake in Valorem
3i Infrastructure plc ("3iN" or the
"Company") is pleased to announce that it has received a binding
offer for its c.33% stake in Valorem, a leading independent
European renewable energy developer and power producer, from funds
managed by AIP Management P/S and from certain other co-investors.
Subject to acceptance of the binding offer, following consultation
with Valorem's employee representative bodies, we expect completion
of the transaction in Q1 2025, following receipt of regulatory
clearances.
Expected net proceeds are
approximately €309 million, a c.15% uplift from our valuation of
€268 million at 31 March 2024, and 31% from the valuation as at 30
September 2023, before the sale process was initiated. Proceeds
will be applied to reduce the outstanding balance on the Company's
revolving credit facility.
At the point of exit, we expect the
3iN investment in Valorem to have generated a c.21% gross annual
IRR and c.3.5x gross money multiple.
Since the Company's initial
investment in 2016, Valorem's business model has been transformed
from an asset developer to one of the leading independent renewable
power producers in Europe. Valorem has also expanded its focus from
French onshore wind generation to include solar and hydro
generation across France, Finland, Greece and Poland. Since 2016,
Valorem's operational asset base has grown to over 850MW, a more
than five-fold increase, and its development pipeline has grown to
6.6GW. During this time EBITDA has also more than
quadrupled.
Valorem is well positioned for
further growth supported by Europe's energy transition, the
ambition of European countries to grow their share of renewable
power, as well as new growth opportunities such as battery storage
to optimise power delivery.
Scott Moseley and Bernardo
Sottomayor, Managing Partners and Co-Heads of European
Infrastructure, 3i Investments plc, Investment Manager of the
Company, commented:
"3iN's strategy is focused on
helping our portfolio of defensive businesses achieve strong growth
as they leverage underlying structural drivers in their markets.
Through this approach we are able to deliver long-term sustainable
returns for our investors.
Valorem is a great example of this.
Over the last eight years, we have worked closely with the team to
support the company's growth from a regional developer to an
established leader in the European renewable power
market.
We will always be disciplined in our
approach to value realisation and balance sheet management. This
divestment provides us with the opportunity to crystalise a
significant uplift to the carrying value, the proceeds of which
will be used to reduce our drawings on our revolving credit
facility.
We thank the Valorem team for our
successful collaboration and wish them and their new partners
success on the next leg of their journey."
-ENDS-
For
further information, contact:
Notes to editors:
About 3i Infrastructure plc
3i Infrastructure plc is a
Jersey-incorporated, closed-ended investment company, 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 influence 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 is the investment manager of
3i Infrastructure plc.
