SDCL pays USD92 million for final stake in Primary Energy portfolio

(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Friday said it is now the 100% owner ...

Alliance News 1 October, 2021 | 8:39AM
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(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Friday said it is now the 100% owner of Primary Energy Ltd after buying out the minority shareholder.

The FTSE 250-constituent said it acquired the remaining 35% equity interest in Indiana, US-based Primary Energy for around USD92 million. The seller was a consortium led by Fortistar LLC.

"The acquisition was identified as part of [SDCL]'s near term pipeline in its recent equity issue," the company said.

Primary Energy owns and operates a portfolio of recycled energy and co-generation projects, the company noted. SDCL said the portfolio is focused on steel mills located in the Indiana Harbor Works.

The 298 megawatt portfolio comprises: three recycled energy projects; one natural gas combined heat and power project; plus a 50% stake in an industrial process efficiency project.

"The projects are fully integrated into the steel mill facilities, including fuel handling and emissions control equipment and systems that are critical for the operation of the facilities," SDCL added.

The London-based investor acquired its initial 50% stake in Primary Energy in February last year. It then upped its stake to 65% in December 2020.

As with the December 2020 deal, the most recent acquisition was transacted under pre-agreed terms, the company said. This avoids a competitive auction for the acquisition. SDCL said this arrangement "create additional value" for its shareholders during the transaction.

Primary Energy "provides critical and cost-effective low carbon energy services to the steel industry, which is one the world's largest sources of greenhouse gas emissions," said chief executive of Sustainable Development Capital LLP, Jonathan Maxwell.

SDCL is a trust focused on energy efficiency investments in the UK, Europe and North America, managed by Sustainable Development Capital.

Shares in SDCL Energy Efficiency were trading down 0.2% at 112.75 pence each in London on Friday morning.

By Scarlett Butler; scarlettbutler@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
SDCL Energy Efficiency Income Ord 115.80 GBX -0.34 -

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