Centrica hires HSBC to sell 50% stake of Lincs offshore wind farm – sources

12 Apr 2016 – Centrica [LON:CNA], a UK utility and energy group, has hired HSBC to advise on the sale of its 50% stake in Lincs offshore wind farm, a source familiar and a sector investor with knowledge of the situation said.

HSBC was awarded the mandate about two weeks ago, and the sale has yet to launch, the source familiar said.

Centrica and HSBC did not respond to requests for comment.

The Lincs Wind Farm has an installed capacity of 270 MW and is 8km off Skegness on the east coast of England.  

Dong Energy and Siemens Project Ventures each own 25% stakes in Lincs. Both are retaining their ownership, the source and the investor said. Dong and Siemens have first refusal over potential buyers, the investor added. Dong and Siemens declined to comment on the situation.

The market rate for operational offshore wind varies from about GBP 3m per MW to GBP 4m per MW, the investor said.

In July 2015 Centrica announced it would dispose of its entire offshore wind portfolio. Lincs is the final asset to be sold. In February, Centrica and its 50% joint venture partner EIG Global Energy Partners agreed a joint sale of the 26MW Glens of Foudland, 194MW Lynn and Inner Dowsing wind farms (GLID) to a consortium, comprising the UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock, for an enterprise value of GBP 423m.

After repayment of debt associated with GLID and other costs, Centrica’s net share of the proceeds will be approximately GBP 115m, it was reported at the time.

Centrica’s market capitalisation stands at GBP 11.8bn. 

By Katie McQue

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