REG - 3i Infrastructure - Further investment in ESVAGT

AMPAnnouncement

03/12/2021 12:35

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RNS Number : 5388U  3i Infrastructure PLC  03 December 2021

3i Infrastructure plc invests a further £268 million in ESVAGT

 

3 december 2021

 

3i Infrastructure plc ("3i Infrastructure" or the "Company") announces that it
has agreed to acquire the stake in ESVAGT owned by its co-investor AMP
Capital. This will result in 3i Infrastructure holding 100% of the equity in
ESVAGT. This further investment is expected to be £268 million. Completion is
subject to certain third party consents and is expected to take place in the
first quarter of 2022.

 

In its half year results announcement, 3i Infrastructure said that a strategic
review of its holding in ESVAGT was in progress and that as part of that
review, offers had been invited. However, the Company retained the options of
continuing to hold its 50% stake, to sell, or to offer to buy the AMP Capital
stake. Binding offers for 100% of the equity were received but not at a
compelling price for 3i Infrastructure, and so the Company elected to offer to
buy the AMP Capital stake.

 

ESVAGT is the market leader in the fast growing segment of service operation
vessels ("SOV") for the offshore wind industry. The company is also a leading
provider of emergency rescue and response vessels ("ERRV") and related
services to the offshore energy industry in and around the North Sea and the
Barents Sea.

 

Since acquiring ESVAGT in 2015, 3i Infrastructure and AMP have supported
management in driving the company's shift in strategic focus towards SOVs and
becoming a key enabler of offshore wind operations in Europe. SOVs represented
less than 10% of earnings at acquisition, but have grown to provide the
majority of ESVAGT's contracted earnings today. During this period, ESVAGT has
delivered six new SOVs, and has entered into a joint venture with Crowley in
the USA to support the emerging offshore wind energy market there.

 

The offshore wind market, and hence demand for SOVs, is expected to grow
strongly over the coming years, as many European governments and US states
have set ambitious offshore wind build-out targets as part of their wider
net-zero emissions plans.

 

Richard Laing, Chair of 3i Infrastructure, commented:

 

"ESVAGT's transition into a market leader in European offshore wind has been a
major achievement. We believe that it is well-placed to benefit from
continuing attractive growth prospects in the wind sector and we are delighted
to be acquiring 100% of the business."

 

Phil White, Managing Partner and Head of Infrastructure, 3i Investments plc,
Investment Manager of the Company, added:

 

"We very much look forward to continuing to work with CEO Peter Lytzen and the
ESVAGT team to take advantage of the future growth of the offshore wind
market, both in Europe and the US."

 

-ENDS-

 

 

For further information, contact:

 Thomas Fodor            Tel: +44 207 975 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:

 

3i Infrastructure plc

 

3i Infrastructure plc is a Jersey-incorporated, closed-ended investment
company and 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 impact 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 acts as
Investment Manager of 3i Infrastructure plc.

 

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