Deal to complete next month
Centrica sells wind farms to GIB consortium
Centrica has sold its holdings in three wind farms to a consortium which includes the Green Investment Bank, netting a profit of £70 million.
The Green Investment Bank Offshore Wind Fund and funds managed by BlackRock have acquired the Glens of Foudland, Lynn and Inner Dowsing wind farms for an enterprise value (assets and debt) of £423 million.
After repayment of debt associated with GLID and other costs, Centrica’s net share of the proceeds will be approximately £115 million.
Glens of Foudland is an onshore wind farm (26MW) located in Aberdeenshire and the Lynn and Inner Dowsing offshore wind farms (194MW) are located off the coast of North East Lincolnshire.
The sale is in line with Centrica’s strategy to dispose of its interests in wind power generation, while continuing to purchase wind power.
Centrica owned the farms in a 50% joint venture with EIG Global Energy Partners and will continue to purchase 100% of the power and 50% of the Renewable Obligation Certificates (“ROCs”) from the three wind farms under existing power purchase agreements until 2024.
Centrica will also provide operations and maintenance support to GLID up to March 2017.
The sale is expected to result in a profit on disposal for Centrica of around £70m, which is likely to be treated as an exceptional item in the company’s 2016 interim financial results.
The transaction is expected to be completed during March.