REG - 3i Infrastructure - Binding offer for Valorem stake

3i InfrastructureAnnouncement

07/10/2024 07:00

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RNS Number : 0838H  3i Infrastructure PLC  07 October 2024

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:

 Thomas Fodor            Tel: +44 20 7975 3469

 Investor enquiries      Email: thomas.fodor@3i.com (mailto:thomas.fodor@3i.com)

 Kathryn van der Kroft   Tel: +44 20 7975 3021

 Media enquiries         Email: kathryn.vanderkroft@3i.com (mailto:kathryn.vanderkroft@3i.com)

 

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.

 

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