REG - International PPL - Partial Disposal of Moray East OFTO

International Public PartnershipsAnnouncement

31/12/2025 11:00

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RNS Number : 3210N  International Public Partnerships  31 December 2025

partIAL disposal of MORAY EAST OFTO

31 December 2025

 

c.£42m raised from a partial disposal of Moray East OFTO

 

International Public Partnerships Limited, the listed infrastructure
investment company ('INPP' or the 'Company'), is pleased to announce that it
has agreed to sell a minority stake of its investment in the Moray East
Offshore Transmission Owner ('OFTO') to Daiwa Energy & Infrastructure Co.
Ltd ('Daiwa'). The transaction is expected to complete in Q1 2026 and will
realise c.£42 million in exchange for a 49% shareholding, with the sale price
being at a premium to the Company's last published valuation 1 . Following the
partial disposal, INPP will retain a majority stake of 51% in Moray East OFTO
including majority board representation.

 

Following completion of this transaction, INPP will have realised c.£387
million of proceeds since July 2023 across the energy transmission, social,
transport and digital infrastructure sectors, equivalent to c.14% of the
portfolio, as at 30 June 2025. All realisations have either been in line with,
or at a premium to, the relevant published valuations.

 

Mike Gerrard, Chair of International Public Partnerships, commented: "This
transaction further reaffirms the Company's proactive and targeted approach to
realising value from the existing portfolio and its ability to reinvest into
higher-returning opportunities. It marks the fourth realisation this year,
across the UK social, transport and energy transmission sectors, with all
transactions completing in line with, or at a premium to, the relevant
published NAV. With a strong pipeline of opportunities available across the
geographies in which the Company invests, INPP remains well positioned to
continue to reinvest into higher returning assets, deliver sustainable growth
and continue our dividend growth track record."

 

Overview of Moray East OFTO

The Moray East OFTO relates to the offshore electricity transmission assets
connecting the 950MW Moray East wind farm located 22km off the Caithness Coast
in the outer Moray Firth, to the National Grid. The transmission assets
comprise the onshore and offshore substations and

connecting cables, c.285km in length.

 

Moray East OFTO is one of 11 OFTO assets within the Company's portfolio and
INPP is preferred bidder on its twelfth OFTO, Moray West, which is anticipated
to complete in 2026. The Company's OFTO portfolio makes an important
contribution to the UK's transition to a net zero carbon economy by being
capable of transmitting enough renewable electricity to power the equivalent
of approximately 3.7 million homes, of which the Moray East OFTO accounts for
around 1.0 million.

 

Disciplined approach to capital allocation

The Company continues to optimise the current portfolio, focusing on targeted
realisations. The Moray East OFTO divestment is made at a premium to the last
published NAV and is consistent with the Company's disciplined approach to
capital allocation, guided by three key principles: (i) prudent use of its
Corporate Debt Facility; (ii) a targeted divestment programme to demonstrate
value and realise capital; and (iii) the strategic deployment of proceeds
towards expanding the share buyback programme or reinvesting, where the
long-term characteristics of a new investment are expected to outperform the
benefits available through share buybacks.

Reflecting this disciplined approach, the Company announced on 12 December, an
increase to its share buyback programme to up to £225 million, extending it
through to 31 March 2027. To date, over £119 million has been used to buy the
Company's shares under the buyback programme.

 

This transaction represents a clear example of how the Company can realise
value from its portfolio assets, at a premium to the relevant published
valuation, and utilise those proceeds to generate higher returns for
shareholders by supporting the share buyback programme and the Company's
commitment to the previously announced c.£254 million equity investment into
Sizewell C 2 .

 

ENDS.

 

For further information:

 

Erica Sibree
                                    +44 (0)
7557 676 499

Amber Fund Management
Limited

 

Hugh Jonathan
                        +44 (0)20 7260 1263

Deutsche Numis

 

Mitch Barltrop/ Maxime Lopes                       +44 (0) 7703
330 199 / (0) 7890 896 777

FTI Consulting

About International Public Partnerships:

INPP is a listed infrastructure investment company that invests in global
public infrastructure projects and businesses, which meets societal and
environmental needs, both now, and into the future.

INPP is a responsible, long-term investor in over 130 infrastructure projects
and businesses. The portfolio consists of utility and transmission, transport,
education, health, justice and digital infrastructure projects and businesses,
in the UK, Europe, Australia, New Zealand and North America. INPP seeks to
provide its shareholders with both a long-term yield and capital growth.

Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and in
this capacity is responsible for investment origination, asset management and
fund management of the Company.

Amber is part of Boyd Watterson Global Asset Management Group LLC, a global
diversified infrastructure, real estate and fixed income business with over
$36 billion in assets under management and over 300 employees with offices in
eight US cities and presence in twelve countries (as at 30 June 2025).

 1  The divestment has been agreed at a premium to the asset's fair value as
at 30 June 2025 (the last published fair valuation) as well as the rolled
forward fair value at the date of this announcement. The roll forward fair
value has been determined by updating the asset's 30 June 2025 valuation to
the announcement date, applying the same discount rate and reflecting
distributions received in the period.

 2  On 4 November 2025, INPP reached financial close on Sizewell C. INPP has
committed a c.£250 million investment into Sizewell C and intends to invest
c.£50 million per annum over the next five years alongside the UK Government,
the Nuclear Liabilities Fund, La Caisse (previously CDPQ), EDF, and Centrica
to finance the landmark construction, development and 60-year operations of a
new nuclear plant capable of producing c.3.2GW of baseload low-carbon
electricity to meet 7% of the UK's forecast electricity needs. Further
information can be seen here:
https://www.internationalpublicpartnerships.com/media/press-releases/inpp-reaches-financial-close-on-sizewell-c/

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