13th Dec 2023 09:22
(Alliance News) - Octopus Renewables Infrastructure Trust PLC announced on Wednesday that it had completed the sale of two Polish onshore windfarms to an affiliate of Orlen SA.
The London-headquartered closed-ended investment company will receive net proceeds of around GBP92.0 million from the transaction, at the upper end of the company's expectations when it entered the sale agreement in October.
The two windfarms, Krzecin and Kuslin, were previously valued at GBP76.0 million, and this deal represents a 21% premium increase and a positive impact of 2.8 pence on net asset value per ordinary share.
Octopus acquired the two farms in October 2021, and their current combined capacity of 59 megawatts generates enough green power for "well over 100,000 homes".
The transaction will realise an internal rate of return of around 30% for Octopus over the lifetime of its investment, and net proceeds will be largely used to pay back its short-term debt facilities.
This sale is demonstrative of Octopus's strategy of "releas[ing] capital through the sale of a small number of assets".
Chair Phil Austin lauded the sale as helping Octopus "accelerate the transition to net zero and also to deliver capital growth for shareholders through active asset and portfolio management."
Octopus Renewables share price was up 2.3% at 89.40 pence each in London on Wednesday morning.
By Hugh Cameron, Alliance News reporter
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