TERRA Firm has signalled its intention to offload its 68.6 per cent stake in Infinis Energy, the renewables company chaired by former SSE boss Ian Marchant.

 

The private equity firm said it was mulling options to "crystallise" value from its majority shareholding, which could see it sell the stake as a whole or in a number of share packages.

Should the stake be sold to a single buyer, or "multiple parties acting in concert", it would trigger the requirement for an offer to be made for all ordinary shares in Infinis, under takeover rules.

The move comes shortly after Terra Firm chairman Guy Hands delivered a stinging rebuke of government energy policy earlier this month, claiming it is biased against onshore wind.

But the decision by the board of the Terra Firma Capital Partners II fund to talk to prospective buyers of the shareholding is not linked to those concerns.

Terra Firm clarified yesterday that Mr Hands' views were expressed in a personal capacity.

The firm has invested £2.5 billion in renewable energy infrastructure since 2003, including significant investments in the UK, Europe and the US.

Its TFCP 11 fund invested Euros 122 million to acquire complete control of Infinis in 2003. Based at the close of trading on Friday its current stake was worth £452m.

The fund reduced its stake by more than 30 per cent to its current shareholding when Infinis Energy was floated on the London Stock Exchange following an initial public offering (IPO) late last year.

Mr Marchant said: "Since our IPO, Infinis has made good progress on its organic growth plans and has delivered on its commitments to investors, providing a combination of stable dividend income and earnings growth. We believe that Infinis continues to offer a compelling investment story."

Shares in Infinis closed up 2.5p at 222p.