Stifel: SDCL Energy Efficiency Income – Issue size increased to £105mGeneral/ 19 October 2020
Oversubscription: The placing of New Ordinary Shares pursuant to the existing Share Issuance Programme announced on 13/10/20 has received a strong level of support from investors and has been significantly oversubscribed.
Size increased: Taking into account the strength of the near-term acquisition pipeline, as well as further positive progress with the negotiations to acquire an established, operational and regulated energy network in a major Western European city, the Board has determined to increase the size of the Placing from gross proceeds of £80m to £105m by re-allocating New Ordinary Shares available under the Share Issuance Programme to the Placing. Accordingly, the Placing will result in the issue of 100m New Ordinary Shares at the Placing Price of 105p. As applications for the New Ordinary Shares have exceeded the gross proceeds accepted, a scaling back exercise has taken place. (Analyst: Max Haycock)
SDCL Energy Efficiency Income – £100m Acquisition of Stockholm gas distribution network
Acquisition: The Trust has agreed to acquire a 100% interest in Värtan Gas Stockholm AB (“VGSAB”), the ultimate owner of the established, operational and regulated gas distribution network for Stockholm, Sweden, involving an equity investment of c.£100m.
Biogas: The VGSAB group (the “Group”) owns and operates Stockholm’s regulated gas grid, the majority of which is sourced from locally produced biogas (c.70%). The Group supplies and distributes to over 58,000 residential, commercial, industrial, transportation and real estate customers in Stockholm. SEEIT intends to work towards increasing the proportion of green gas in the network to 100% over time. The Group’s revenues, which are primarily regulated, are predominantly based on fixed tariffs with relatively low sensitivity to customer demand or consumption.