Monterey Capital, a Terra Firma company, is to acquire the remaining 31.5% of Infinis Energy that it does not already own.
Monterey currently holds shares amounting to 68.5% of the UK-based renewable energy developer.
It will pay £1.85 per share in cash, with the acquisition valuing the developer at £555m.
Terra Firma chairman and chief investment officer Guy Hands said: “The transaction announced today is part of Terra Firma’s strategy of monetising its investment in Infinis, a business that we have owned and invested in over more than a decade.
Goldman Sachs was advisor to Terra Firma and Monterey, while Barclays and RBC advised Infinis.
“We have considered gradual sell-downs of our interest in the company since its IPO in November 2013 and more recently we have also explored other strategic options, but the change in the regulatory environment for Infinis has prompted us to rethink our strategy.
“We believe that this transaction offers Infinis’ shareholders an attractive cash consideration for their shares in Infinis and allows Terra Firma to pursue alternative options to monetise its investment in Infinis once it is a private company.”
The announcement comes the day after Infinis closed financing totalling £51m for the 8MW Sisters and 19MW North Steads wind farms in Northumberland.
The debt facilities were arranged by Santander and will fund the construction of both wind farms.
Image: Glenkerie wind farm in Scotland (Infinis)
