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Renewable energy firm Infinis is set to return to private hands through a £555 million buy back as shares in the company plummet following government cuts to renewables support.
Private equity firm Terra Firma said it will take the company private less than two years after it floated a 31.5 per cent share of the Scotland-based firm on the London stock market.
Terra Firma plans to pay investors 185p a share for their holding in Infinis. The offer represents a premium of around 40 per cent on its current trading price or around £555 million in total value.
Terra Firma chief executive Guy Hands said: “We believe that this transaction offers Infinis’ shareholders an attractive cash consideration for their shares in Infinis and allows Terra Firma to pursue alternative options to monetise its investment in Infinis once it is a private company.
“We are pleased that the Infinis independent directors have unanimously recommended the transaction and are grateful to the Infinis board and management team for their support, in particular as we have jointly completed the preparations for the offer announced today.”
The decision to take the company back into private hands follows the government’s controversial decision to cut support for renewable energy through the Renewables Obligation (RO) scheme a year earlier than anticipated.
As a result shares in Infinis have plummeted from 196 pence in early July to just over 125 pence at the start of the week. The share price was more than double this rate when it first floated in November 2011 at 270 pence.
Shares have since rocketed higher to 183 pence following news of the buy back.
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