The Renewables Infrastructure Group (TRIG) has announced the sale of a 15.2% equity stake in the 330-megawatt Gode offshore wind farm off Germany for €100 million. This transaction, conducted at a 9% premium to the carrying value, involves funds managed by Equitix Investment Management. The deal remains subject to clearances and consents.
Following the sale, TRIG will retain a 9.8% ownership in the wind farm.
As part of its 2023 annual results announced in February 2024, TRIG had outlined its plan to use retained cash and proceeds from asset sales to reduce its floating rate borrowings under its revolving credit facility (RCF) to £150 million within 2024. As of June 30, 2024, RCF drawings were £334 million. The proceeds from the sale of the Gode stake, along with the previously announced sale of the Pallas onshore wind farm, are expected to reduce RCF borrowings to £195 million.
TRIG Chairman Richard Morse stated, “The disposals secured by the Managers both enhance TRIG's NAV and create headroom for future growth.” He added that the company's commitment to prudent capital allocation includes evaluating attractive investment opportunities and considering share buybacks, with a £50 million share buyback program now initiated.
InfraRed's Minesh Shah commented, “We are pleased with the partial sale of our stake in Gode at a healthy premium to the most recent valuation.” He noted that over the past year, TRIG has sold stakes in seven assets totaling £210 million, achieving an average premium of 11% above the assets' valuations. Shah highlighted the ongoing disparity between private and public market valuations for renewables infrastructure.
