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3i Infrastructure makes further investment in ESVAGT

3i Infrastructure makes further investment in ESVAGT – 3i Infrastructure has agreed to acquire the stake in ESVAGT owned by its co-investor AMP Capital. This will result in 3i Infrastructure holding 100% of the equity in ESVAGT. The ticket price for this further investment is expected to be £268m. Completion is subject to certain third party consents and is expected to take place in the first quarter of 2022.

In its half year results announcement, 3i Infrastructure said that a strategic review of its holding in ESVAGT was in progress and that as part of that review, offers had been invited. However, the company retained the options of continuing to hold its 50% stake, to sell, or to offer to buy the AMP Capital stake. Binding offers for 100% of the equity were received but not at a compelling price for 3i Infrastructure, and so it elected to offer to buy the AMP Capital stake.

ESVAGT is the market leader in the fast growing segment of service operation vessels for the offshore wind industry. The company is also a leading provider of emergency rescue and response vessels and related services to the offshore energy industry in and around the North Sea and the Barents Sea.

Since acquiring ESVAGT in 2015, 3i Infrastructure and AMP have supported management in driving the company’s shift in strategic focus towards service operation vessels and becoming a key enabler of offshore wind operations in Europe. Service operation vessels represented less than 10% of earnings at acquisition, but have grown to provide the majority of ESVAGT’s contracted earnings today. During this period, ESVAGT has delivered six new service operation vessels, and has entered into a joint venture with Crowley in the USA to support the emerging offshore wind energy market there.

The offshore wind market, and hence demand for service operation vessels, is expected to grow strongly over the coming years, as many European governments and US states have set ambitious offshore wind build-out targets as part of their wider net-zero emissions plans.

3IN : 3i Infrastructure makes further investment in ESVAGT

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