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Strong interest as Gaelectric prepares to offload windfarm portfolio valued at £276m

By John Mulligan

Published 22/04/2016

Up to 20 expressions of interest have been received for Gaelectric's windfarm portfolio, which is likely to have an equity value of between €250m (£197m) and €350m (£276m)
Up to 20 expressions of interest have been received for Gaelectric's windfarm portfolio, which is likely to have an equity value of between €250m (£197m) and €350m (£276m)

Up to 20 expressions of interest have been received for Gaelectric's windfarm portfolio, which is likely to have an equity value of between €250m (£197m) and €350m (£276m), it can be revealed.

However, the enterprise value of the windfarms, which includes debt, is likely to be around €750m (£591m).

A sale deal could include part or all of about 200 megawatts of wind energy output, spread over 23 windfarms owned by the energy company.

Earlier this month, the firm opened a 12 megawatt windfarm at Monnaboy in Co Derry. Gaelectric previously set a target of having 400 megawatts of working windfarms by 2017.

It is believed that a range of potential buyers, including those in the trade, investors and pension funds, are among those that have so far kicked the tyres on the assets.

It is also understood that parties from the far East are among those interested in the windfarms, which are also being eyed by European investors.

The company initiated a possible sales process earlier this year, hiring investment bank Rothschild to tease out potential buyers.

Rothschild has yet to seek formal offers from potential bidders for the windfarm portfolio, but it is understood that the sales process will complete in either the current quarter of the year or the third quarter.

Gaelectric, whose chief executive is Brendan McGrath, was founded in 2004 and owns 13 windfarms in Northern Ireland and nine in the Republic. It recently acquired the 46 megawatt Cloghboola windfarm in Kerry.

Belfast Telegraph

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