Terra Firma mulls Infinis sale

The private equity firm is considering ways to ‘crystallise value’ in the renewable energy firm which had a London IPO last year.

Private equity firm Terra Firma made a statement to the London Stock Exchange saying that it was “exploring options to crystallise the value” of its 68.8 percent stake in Infinis Energy which included a potential sale.

Terra Firma said the size of the stake meant there was “merit” to exploring interest in the stake as a whole as well as other options including market sell-downs.

In response to the announcement, Infinis chairman Ian Marchant said: “Since our IPO, Infinis has made good progress on its organic growth plans and has delivered on its commitments to investors, providing a combination of stable dividend growth and earnings growth. We believe that Infinis continues to offer a compelling investment story.”

Infinis was listed on the London Stock Exchange in November last year at 260p per share, at the bottom end of its expected price range of 260p to 310p. The IPO valued the firm at £780 million (€981 million; $1.3 billion). This month, the shares have been hovering around the 220p to 230p range.

The firm is an independent renewable energy operator in the UK with a diversified portfolio across landfill gas, wind and hydro power. It was established in 2006 as a spinout from Waste Recycling Group, which Terra Firma bought in 2003.

Terra Firma is raising a green energy infrastructure fund which reportedly has a $2 billion target and $3 billion hard cap. In February this year, it appointed three co-heads – Mike Kinski, Stefan Thiele and Ingmar Wilhelm – to run the business, replacing the former head Damian Darragh.