Guy Hands’s Terra Firma is buying back a renewable energy company it floated two years ago after the shares failed to make headway on the stock market, partly because of subsidy cuts.
Monterey Group, owned by the private equity group, is offering 185p a share for the 31.5 per cent it does not own in Infinis Energy, which operates generating plants using landfill gas and had promised to expand into wind power. This represents a significant discount to the 260p at which the shares were sold.
The offer values the company at £555 million.
The Infinis board is backing the deal, which is at a 40 per cent premium to the price the shares were trading at on Wednesday’s close. They ended up 52p at