Schroders confirms acquisition talks with Greencoat Capital

British asset management giant Schroders Plc (LON:SDR) on Thursday confirmed earlier press reports that it is in advanced discussions to purchase a large stake in domestic fund manager Greencoat Capital LLP, which owns and operates over 3 GW of renewables.

Schroders did not provide any financial details in the filing and cautioned that the talks may not lead to a binding agreement.

"Schroders continues to evaluate potential acquisition opportunities in line with its strategy to build a comprehensive private assets platform and enhance its leadership position in sustainability," the asset manager said.

The statement came on the heels of a report by Sky News that Schroders is on the cusp of unveiling the acquisition of a 75% stake in Greencoat for around GBP 360 million (USD 477.1m/EUR 423.6m).

The target company has over GBP 6 billion of assets under management, according to its website. It invests in wind and solar infrastructure projects through several funds, as well as in biomass and renewable heating plants. Its funds include the listed Greencoat UK Wind Plc (LON:UKW) and Greencoat Renewables Plc (LON:GRP) with market capitalisations of about GBP 2.9 billion and GBP 822 million, respectively.

Greencoat also co-owns two wind portfolios in Texas and Illinois in the US, of 1.5 GW in total, in joint ventures with RWE and Algonquin, and EDPR, respectively.

(GBP 1 = USD 1.325/EUR 1.177)

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