3i Infrastructure PLC 3iN to fund acquisition of Alkane Energy (6099G)
March 05 2018 - 2:00AM
UK Regulatory
TIDM3IN
RNS Number : 6099G
3i Infrastructure PLC
05 March 2018
3i Infrastructure announces follow-on investment in Infinis and
acquisition of Alkane Energy
5 March 2018
3i Infrastructure plc ("3i Infrastructure" or "the Company")
today announces that it intends to increase its investment in
Infinis by c. GBP125 million to fund Infinis's acquisition of
Alkane Energy ("Alkane"), an independent power generator from both
coal mine methane ("CMM") and Reserve Power operations and the
largest generator from CMM in the UK. Completion is subject to
third party approval.
Infinis is the largest generator of electricity from landfill
gas in the UK, in which 3i Infrastructure invested in December
2016. The merger of Alkane with Infinis will create a business with
significant scale, offer operational improvement opportunities and
the potential to further elevate Alkane's generation performance
and growth potential.
Founded in 1994 and headquartered in Edwinstowe,
Nottinghamshire, Alkane has approximately 40 employees. The company
operates the largest portfolio of CMM sites in the UK, capturing
methane from mothballed and closed coal mines and converting it
into electricity. As at December 2017, Alkane had 160MW of
installed generating capacity operating across 32 sites across the
UK.
Alkane performs a vital environmental service, extracting
methane from abandoned coal mines that would otherwise be released
into the atmosphere. Methane is a potent greenhouse gas. Further,
by using the CMM to generate electricity, Alkane supplies
distribution networks with a reliable source of baseload power.
Richard Laing, Chairman, 3i Infrastructure plc, commented:
"We are pleased with today's investment in Alkane. The
investment offers an attractive return with a strong cash yield
which will contribute to the Company's dividend. It further
demonstrates the Investment Adviser's ability to originate
bilateral transactions and to build the platform businesses in the
Company's existing portfolio."
Phil White, Managing Partner and Head of Infrastructure, 3i
Investments plc, Investment Adviser to the Company, commented:
"The combination of Alkane with Infinis is compelling, adding an
attractive portfolio of generating assets with potential to grow
over time, and diversifying Infinis's revenues."
-Ends-
For further information, contact:
Chairman, 3i Infrastructure +44 1534 847
Richard Laing plc 410
=============== ============================= =============
+44 20 7975
Thomas Fodor Investor enquiries 3469
=============== ============================= =============
Kathryn van +44 20 7975
der Kroft Media enquiries 3021
=============== ============================= =============
Notes to editors:
About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company, listed on the London Stock Exchange and
regulated by the Jersey Financial Services Commission. The Company
is a long-term investor in infrastructure businesses and assets.
The Company's market focus is on economic infrastructure and
greenfield projects in developed economies, principally in Europe,
investing in operating businesses and projects which generate
long-term yield and capital growth.
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 Adviser to 3i Infrastructure
plc.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQGMGGFLFMGRZG
(END) Dow Jones Newswires
March 05, 2018 02:00 ET (07:00 GMT)
3i Infrastructure (LSE:3IN)
Historical Stock Chart
From Apr 2024 to May 2024
3i Infrastructure (LSE:3IN)
Historical Stock Chart
From May 2023 to May 2024