Renewable infrastructure fund’s freshest deals demonstrate ability to buy utility-scale assets

Greencoat UK Wind (UKW) plans to buy stakes in two wind farms from SSE (SSE) for £452m. It also plans to issue new shares at a 5.1% discount to its closing price on the night before the announcement to raise up to £131m.

‘These are significant acquisitions for Greencoat UK Wind with the acquisition price of £452m representing 32% of net assets (or c.30% assuming the completion of the fundraising),’ says the investment trust team at stockbroker Numis.

‘SSE has announced that the acquisition price implies an average valuation of £4m/MW. We understand that the manager is comfortable with a relatively expensive headline valuation due to the quality of the assets, which are new, have a high load factor, and have renewables obligation certificates running to 2036/2037.’

 

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