Challenge over preferred bid
Green Investment Bank sale heads for high court
The sale of the Green Investment Bank is now mired in legal action after one of the bidders launched a high court case challenging the Government’s decision to support an offer from Australian investment bank Macquarie.
Sustainable Development Capital (SDC) has begun judicial review proceedings over Macquarie’s preferred bidder status.
It claims that Macquarie’s bid did not comply with the Government’s criteria for selling the Edinburgh and London co-headquartered bank.
SDC is a consortium of experts from private equity, real estate, infrastructure, commercial, financial, legal, and technical sectors who have come together for energy efficiency investment and fund management. Among those involved in the New York based investment guru Ned Davis.
SDC told The Daily Telegraph: “The fact that no deal was completed within the targeted timetable attests to the fact that the preferred bid was neither deliverable within the timeframe nor acceptable.”
The GIB, chaired by Lord Smith, was set up in 2012 with £3.8 billion of state funding to enable investment in large-scale renewables projects that struggle to get private sector funding in order to get them off the drawing board.
The government decision to sell down its stake has not been universally welcomed and the controversial process was muddied further when it emerged that Macquarie is thought to be planning to asset strip the bank.
There are concerns the bank’s green credentials may be swept aside by a new owner. But energy minister Nick Hurd insists the bank will be required to honour its green purpose after privatisation.