Jlen Environmental: Acquisition
04/12/2023 07:00
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RNS Number : 4809V JLEN Environmental Assets Group Ltd 04 December 2023
4 December 2023
JLEN Environmental Assets Group Limited
Acquisition of remaining 30% shareholding in Bio Collectors Holdings Limited
JLEN Environmental Assets Group Limited ("JLEN" or the "Company"), the listed
environmental infrastructure fund, announces the purchase of the remaining 30%
shareholding in Bio Collectors Holdings Limited ("BCH") for a total
consideration of £8.0 million, taking its ownership in the business to 100%.
BCH, through its subsidiary companies, holds the rights and operational assets
that make up an anaerobic digestion ("AD") plant and the Bio Collectors waste
collections business. JLEN acquired a 70% interest in BCH in December 2019,
at which time, a mechanism was agreed for the acquisition of the remaining 30%
following the expiry of an initial holding period.
The AD plant was commissioned in December 2013 and predominantly produces
biomethane to be injected to the national gas grid. In addition, the plant has
two Combined Heat and Power engines and is accredited under the Renewable Heat
Incentive (RHI) and Feed-in-Tariff (FiT) schemes. The Bio Collectors waste
collections business collects source-separated and packaged food waste for the
AD plant from a variety of commercial, industrial and local authorities
located in and around Greater London ultilising a growing fleet of
biogas-powered vehicles.
The acquisition increases JLEN's exposure to an investment that is expected to
deliver attractive returns for shareholders and of which it has direct
operational knowledge and expertise. It also allows JLEN to consolidate its
control of BCH, creating the potential for JLEN to deliver operational
synergies across its portfolio of food waste AD plants.
Bio Collectors and Codford, the Company's food waste AD plant in Wiltshire,
are both expected to benefit from a recent DEFRA announcement stating that
separate food waste collections will be required in England for businesses by
31 March 2025 and for all households by 31 March 2026.
Ed Warner, Chair of JLEN commented: "We are pleased with this follow-on
investment which we view as value accretive to JLEN's portfolio over the long
term. We view the role of food waste anaerobic digestion as strategically
important in not only helping to decarbonise our energy and transport systems
through the production and usage of biogas but also contributing to the
diversion of waste away from landfill."
For further information please contact:
JLEN Environmental Assets Group Limited via SEC Newgate
Foresight Group +44(0)20 3667 8100
Chris Tanner
Edward Mountney
Wilna de Villiers institutionalir@foresightgroup.eu (mailto:institutionalir@foresightgroup.eu)
Winterflood Securities Limited +44(0)20 3100 0000
Neil Langford
SEC Newgate +44 (0)20 3757 6882
Elisabeth Cowell Jlen@secnewgate.co.uk (mailto:Jlen@secnewgate.co.uk)
Alice Cho
Harry Handyside
Sanne Fund Services (Guernsey) Limited +44 (0)20 3530 3600
Matt Falla
Gemma Berry
About JLEN
JLEN's investment policy is to invest in a diversified portfolio of
Environmental Infrastructure. Environmental Infrastructure is defined by the
Company as infrastructure assets, projects and asset-backed businesses that
utilise natural or waste resources or support more environmentally friendly
approaches to economic activity, support the transition to a low carbon
economy or which mitigate the effects of climate change. Such investments will
typically feature one or more of the following characteristics:
· long-term, predictable cash flows, which may be wholly or partially
inflation-linked cash flows;
· long-term contracts or stable and well-proven regulatory and legal
frameworks; or
· well-established technologies, and demonstrable operational performance.
JLEN's aim is to provide investors with a sustainable, progressive dividend
per share, paid quarterly and to preserve the capital value of the portfolio
over the long term on a real basis. The target dividend for the year to 31
March 2024 is 7.57 pence per share(1).
JLEN is an Article 9 fund under the EU Sustainable Finance Disclosure
Regulation and has a transparent and award winning approach to ESG.
Further details of the Company can be found on its website www.jlen.com
(http://www.jlen.com/)
LEI: 213800JWJN54TFBMBI68
((1)) These are targets only and not profit forecasts. There can be no
assurance that these targets will be met or that the Company will make any
distributions at all.
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