Greencoat placed 260 million shares at 100 pence apiece, exceeding an initial target of about 205 million pounds, the London-based company said today in a statement. It will acquire interests in six operational wind farms in Britain with a combined capacity of 126.5 megawatts.
The offering is a boon for the U.K. wind industry, the focus of government plans to get 30 percent of power from renewable sources by the end of the decade, up from almost 12 percent now. Britain’s program of wind-farm subsidies underpins Greencoat’s targeted 6 percent dividend yield, the company said.
SSE, based in Perth, Scotland, had already agreed to sell four wind farms for 140 million pounds to Greencoat, with as much as 43 million pounds of that to be invested in the IPO. As the share sale was oversubscribed, SSE scaled back its investment to 10 million pounds, while the U.K. Department for Business, Innovation and Skills contributed 50 million pounds.
Greencoat’s acquisitions will include a 24.95 percent share in the 90-megawatt Rhyl Flats wind park off North Wales. Britain’s Green Investment Bank also bought a stake of the same size in Rhyl Flats from RWE for 57.5 million pounds, it said in a separate statement.
Greencoat will admit the shares to the London Stock Exchange on March 27.
To contact the reporter on this story: Sally Bakewell in London at firstname.lastname@example.org
To contact the editor responsible for this story: Reed Landberg at email@example.com