3i Infrastructure PLC on Monday announced it has received a binding offer for its 33% stake in Valorem from funds managed by AIP Management PS and other co-investors.

3i Infrastructure is a Jersey-based infrastructure investment trust managed by 3i Investments PLC, whilst Valorem is a European renewable energy developer and power producer.

Net proceeds to 3i Infrastructure from the stake sale are expected to be about €309 million, 15% higher than the investment’s valuation of €268 million on March 31, and 31% higher than its valuation on September 30, 2023, before the sales process began. 3i Infrastructure said it will use the proceeds to pay down its revolving credit facility.

‘We will always be disciplined in our approach to value realisation and balance sheet management. This divestment provides us with the opportunity to crystallise a significant uplift to the carrying value,’ said Scott Moseley and Bernardo Sottomayor, managing partners & co-heads of European infrastructure at 3i Investments.

Since 3i Infrastructure first invested in 2016, Valorem has expanded its focus from French onshore wind generation to include solar and hydro-generation across France, Finland, Greece and Poland. Valorem’s operational asset base has grown more than five-fold since 2016 to 850 mega watts, and its development pipeline has grown to 6.6 gigawatts. Its earnings before interest, tax, depreciation and amortisation has more than quadrupled, 3i Infrastructure noted.

‘Over the last eight years, we have worked closely with the [Valorem] team to support the company’s growth from a regional developer to an established leader in the European renewable power market,’ Moseley and Sottomayor said.

3i Infrastructure said it expects the sale to complete in the first quarter of 2025, after it has received regulatory clearances.

Shares in 3i Infrastructure were up 0.7% at 344.00 pence each in London on Monday morning.

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