09 Jan 2017 – Private Equity company Terra Firma has selected the four final bidders for the sale of its Infinis Energy UK wind portfolio, two sources briefed on the situation said.
China General Nuclear Power (CGN), JP Morgan Asset Management, Shanghai Electric [SHA:601727] and The Renewable Infrastructure Group [LON:TRIG] are all through to the second bidding round, the sources briefed said.
Mergermarket reported in January 2016 that Terra Firma had appointed Goldman Sachs and RBS to advise on the sale of the 274MW onshore wind portfolio.
This is the second sales process Terra Firma has run for the portfolio since January 2016. The first process was reported to have progressed until July 2016, with China Huadian Corp selected as the preferred bidder. China Huadian had placed a bid of about GBP 500m, as reported by Mergermarket.
This sales process was then scrapped. It is thought this is because Terra Firma is looking for a higher price tag for the disposal, the sources said.
JP Morgan Asset Management declined to comment. Terra Firma, Chian Huadian, Shanghai Electric, CGN and TRIG did not respond to a request for comment.
All of the original bidders were invited to re-submit bids, and new companies were also encouraged to participate in the auction, the first source added. This meant that 13 companies placed bids in the second sales process in 2H16, the source added.
The pricing for the portfolio in the second sales process is about GBP 650m, the first source briefed said. This equates to around GBP 400m for the operational part of the portfolio, and and additional GBP 250m for the late-stage development assets, he noted.
CGN was named the winning bidder of Gaelectric’s 228MW Irish wind portfolio in October 2016.
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).
By Katie McQue