May 8 (Renewables Now) - Greencoat UK Wind plc (LON:UKW) today announced it plans an up to GBP-118.8-million (USD 160.9m/EUR 135.1m) share offering, seeking to raise funds to further lift its shareholding in the Clyde wind farms in Scotland.
The British firm and GLIL Infrastructure LLP currently hold a combined 35% stake in Clyde Windfarm Scotland Ltd, the owner of the 349.6-MW Clyde and the 172.8-MW Clyde Extension wind farms. According to its plan, it will increase its shareholding in the wind farms to 28.2% for GBP 114.2 million in a deal that should close on May 30.
In order to finance the acquisition, it will start a placement of up to 101.58 million new ordinary shares at a price of GBP 1.17 apiece, representing a 2.6% discount to the closing price of Greencoat's stock on May 4. The offering will be conducted on a non pre-emptive basis among institutional investors and is seen to be accretive to the net asset value per share of the company, after costs, Greencoat said.
The exact number of shares to be placed will be determined following a bookbuilding process, expected to be completed on May 18 or earlier.
After selling a further 5% stake in Clyde Windfarm last summer, SSE Plc (LON:SSE) gave Greencoat and GLIL an option to buy an additional 14.9% in the two wind parks by June 2018. GLIL will also exercise its option to boost its stake in Clyde to 21.7%, according to the statement.
Upon completion, Greencoat and GLIL will own a combined 49.9% in the wind parks.
(GBP 1.0 = USD 1.354/EUR 1.137)