Terra Firma hires Goldman Sachs and RBC to advise on sale of Infinis – sources

27 Jan 2016 – Terra Firma has hired Goldman Sachs and Royal Bank of Canada (RBC) to advise on the sale of renewable energy generator, Infinis Energy, a source and three sector bankers said.

In October 2015, Terra Firma repurchased the 31.5% of Infinis’ it did not own two years after listing the company on London Stock Exchange. It subsequently delisted Infinis on 18 December 2015. Terra Firma’s offer for the 31.5% stake valued Infinis at around GBP 555m. This compares with GBP 780m when it debuted in November 2013. The fall in share price was attributed to the UK government’s decisions to scale back on renewables subsidies.

Changes to the legislation make the business less attractive and Terra Firma is keen to find a solution, a second source with knowledge of the company said. Terra Firma delisted Infinis with the intention of selling the firm, he added.

Infinis’ assets are likely to be split into two portfolios – onshore wind and landfill gas (LFG) power sites – to be sold separately as potential buyers for both types of assets would be different, the first and second sector bankers said.

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

The firm’s onshore wind farm portfolio has a total installed capacity of 274MW. It includes the Scottish wind farms: Ardrossan (30MW), Dalswinton (30MW), Glenkerie (22MW), Gordonstown Hill (12.5MW), Hill of Fiddes (6.9MW), Minsca (36.8MW), Westfield (10MW). In England there is Blackstone Edge (7.5MW), Lissett Airfield (30MW), Low Spinney (8.2MW), Seamer (10.25MW), Tedder Hill (7.5MW), Wingates (15MW). In Wales the company owns two wind farms; Mynydd Clogau (15MW), Rheidol (2.4MW). And in Northern Ireland there is Slieve Divena (30MW).

Goldman Sachs, RBC and Terra Firma declined to comment.

by Katie McQue, Patrick Harris and Elza Pell