BBIP Acquisition of Alkane Energy
BBIP (Balfour Beatty Infrastructure Partners, L.P.) announced today that it has secured control of 100 percent of the shares in Alkane Energy plc (Alkane or the Company) through its wholly owned subsidiary Barbican Bidco Limited. This follows the recommended cash offer, supported by Alkane’s board and largest shareholder announced on 16 September 2015. This public to private transaction is the fourth investment by BBIP since its fundraising closed in July 2014.
Alkane is a fast growing, independent UK power generation business. It operates midsized ‘gas to power’ electricity plants providing both predictable and fast response capacity to the grid. Alkane has a total of 145 MW of installed generating capacity, located at 28 sites around the UK.
Alkane includes the UK’s leading portfolio of Coal Mine Methane licenses, enabling the Company to utilise methane gas from abandoned coal mines. In addition, power response sites are connected to mains natural gas and produce electricity at times of high electrical demand or in order to balance the electricity grid through participation in the National Grid’s STOR market. Alkane currently operates 98MW of power response, including 25MW of contracted STOR revenues extending out to 2025.
Alkane has also benefited from the new UK capacity market, following the award of 46MW of new build capacity with 15 year agreements in 2014 and an additional 28MW of long term contracts awarded since BBIP’s offer.
Commenting today for BBIP, Managing Partner of BBIP’s investment adviser Rob Gregor said: “BBIP was attracted to the flexibility and diversification of generation provided by the independent power platform of Alkane. We see great opportunity in the business which has been proven by the recent awards of new long term capacity contracts and new coal mine methane opportunities from the recent Round 14 Onshore Oil and Gas Licensing Awards. BBIP approached Alkane on a bilateral basis in mid-2015, and this acquisition again reinforces BBIP’s strategy of seeking out negotiated bilateral transactions.”
BBIP’s strategy is to invest in the key sectors of energy, transportation and utility assets across the UK, Europe, and North America. Alkane is BBIP’s fourth investment and complements investments into the renewable, utility and transport sectors in Europe and North America
Investec acted as BBIP’s financial advisor for this transaction and Travers Smith LLP acted as its legal advisor.
Media enquiries to BBIP’s Investment Adviser:
Balfour Beatty Infrastructure Partners LLP Rob Gregor – Managing Partner Tel (+44) 7766 3350 firstname.lastname@example.org
Notes to editors: About BBIP BBIP is an infrastructure equity investment fund focusing on investments in utilities, energy and transport infrastructure in the United States, Canada and Europe. BBIP investments include McEwan Power, Wightlink Ferries, and Alkane Energy in the UK, plus Upper Peninsula Power Company in the US. For more information on BBIP please visit www.bbip.com.