12th Jul 2022 11:02
(Alliance News) - Foresight Group Holdings Ltd on Tuesday said it is buying Infrastructure Capital Holdings Pty Ltd, an Australian specialist infrastructure investment manager.
Foresight said the acquisition is worth up to AUD140 million, around GBP79.6 million. It will lead to "one of the leading independent renewable generation and infrastructure investors in Australia and will benefit from enhanced product and distribution capabilities."
Foresight will pay AUD105 million up front, with 50% of this in cash and 50% in new Foresight shares. The cash component is funded by existing financial resources, it explained. Foresight also will pay contingent consideration of up to AUD35 million, as well as up to AUD25 million for management performance.
Sydney-based Infrastructure Capital Holdings had about GBP2.8 billion in assets under management and GBP1.8 billion in funds under management as of March 31. Foresight itself reported GBP8.8 billion in AUM and GBP6.7 billion in FUM as of the same date, up from GBP7.2 billion and GBP5.1 billion a year ago respectively.
Foresight, which is a Guernsey-based infrastructure and private equity investment manager, also on Tuesday reported profit growth in its financial year that ended March 31 and hiked its total dividend.
Pretax profit surged 78% to GBP27.9 million from GBP15.7 million a year ago. Revenue grew 25% to GBP86.1 million from GBP69.1 million.
The firm proposed a final dividend of 9.8 pence per share, bringing the total to 13.8p, a sharp increase from the 1.7p total dividend it declared for the previous financial year. The company has 60% target payout ratio.
Regarding Foresight's outlook, Chair Bernard Fairman said: "Although the decarbonisation of energy generation and the shift to a more sustainable society is accelerating, these changes continue to present multi-year opportunities for us. We are confident that the outlook for Foresight in the coming year and beyond continues to be very positive."
Foresight shares were 3.4% higher at 382.63 pence each in London on Tuesday morning.
By Tom Budszus; [email protected]
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