Infinis landfill gas portfolio indicative bids due in September as funds line up

09 Aug 2016 – Private equity firm Terra Firma is to receive indicative bids in September for the sale of the landfill gas portfolio within its portfolio company Infinis, a source close to the process and a person briefed said. The sale will likely conclude before the end of the year, the source close said.

I Squared Capital is among those having already shown an interest in the asset, the source close, a source familiar with the matter and a sector banker following the situation said.

I Squared is being advised by Nomura on the potential deal, the source close and the source familiar said. It is the strongest interested party, a person familiar with the matter added. In March, I Squared agreed to acquire Irish energy company Viridian from Arcapita for GBP 780m, according to press reports.

Macquarie [ASX:MQG] is also interested in the target, the sector banker and the person briefed said.

EQT looked at the asset but it is understood that it does not intend to pursue it.

Terra Firma mandated RBC and Goldman Sachs to dispose of Infinis through the separate sale of its wind and landfill gas businesses, this news service reported in January.

The wind business has been auctioned first. China Huadian Corp is the preferred bidder, valuing the asset at around USD 500m, according to press reports from early July. This equated to around GBP 386m at the time of the report.

The landfill gas portfolio has been seen as less attractive than the wind one but there is cash flow there and will be appealing at the right price, the sector banker said.

In October 2015, two years after listing the company on the London Stock Exchange, Terra Firma repurchased the 31.5% stake of Infinis it did not already own. It subsequently delisted Infinis on 18 December 2015. Terra Firma’s offer for the 31.5% stake valued Infinis at around GBP 555m.

Infinis portfolio comprises 121 landfill gas power sites across the UK with an aggregate generating capacity of 306MW, according to the company’s website.

Macquarie, Terra Firma and EQT declined to comment. I Squared did not respond to requests for comment.

by Katie McQue and Patrick Harris

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