SDCL Energy Efficiency Income Trust PLC on Tuesday said it has agreed to sell UU Solar to UK Power Networks Services Holdings Ltd, for £90.8 million.
SDCL Energy Efficiency Income Trust invests in assets in the energy efficiency sector, such as electric vehicle charging infrastructure and geothermal and biogas projects.
The investor said the agreed price represents a 4.5% premium to UU Solar’s September 30 valuation.
The sale proceeds will be used to reduce short term borrowings under its revolving credit facility, SDCL added.
The UU Solar investment was made in 2022. UU Solar supplies all the existing on-site renewable electricity for United Utilities Group PLC, a UK-based water supply company.
SDCL Chief Executive Officer Jonathan Maxwell said: ‘The sale is positive news for [SDCL] as it makes a meaningful contribution to its objectives to reduce short term borrowings, to improve liquidity and to focus on investment in higher yielding assets that support [SDCL’S] total return objectives.
‘UK Power Networks Services represents an excellent strategic buyer for a high-quality portfolio serving an important client. We hope to build on our relationship with both United Utilities and UK Power Networks Services in the future to deliver new opportunities for [SDCL],’ he added.
Shares in SDCL were up 2.8% at 62.10 pence per share on Tuesday morning.
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