2 minute read | May.08.2024
Orrick has advised SDCL Energy Efficiency Income Trust plc (SEEIT) on its sale of SEEIT Sol Limited (SEEIT Sol) to UK Power Networks Services Holdings Limited, the private networks business of UK Power Networks Group, for a consideration of £90.8 million.
Orrick acted for SEEIT (LON: SEIT) on its acquisition of the entire issued share capital of SEEIT Sol in 2022.
SEEIT Sol supplies on-site renewable electricity – through solar, wind, mini-hydro and other technologies – to the leading UK water company, United Utilities.
Founded in 2007, Sustainable Development Capital LLP (SDCL) is the investment manager of SEEIT, which launched in 2018 and is a constituent of the FTSE 250 index. SEEIT was the first UK-listed company of its kind to invest exclusively in the energy efficiency sector.
SEEIT Sol represented a long-term, contracted portfolio with an investment grade counterparty that contributed to SEEIT’s portfolio construction and its objectives to secure income and preserve of capital.
The agreed price in this sale represents a 4.5% premium to the SEEIT’s 30 September 2023 valuation. The sale of SEEIT Sol creates liquidity for SEEIT that can be applied to strengthen its balance sheet, to help meet its investment objectives, and to optimise portfolio construction.
Adam Smith, Orrick partner, commented: “We are delighted to have advised SEEIT/SDCL on this disposal and congratulate the SEEIT/SDCL team on achieving their objectives of proving the asset valuation whilst generating more liquidity for SEEIT that can be re-focused within the portfolio."
The Orrick team advising on the acquisition included Adam Smith, Barry Cahill, Craig Bruce, Craig Johnston, Taylor Brien and Milo Dunne.