US Solar Fund (USF) has granted its potential buyer another 60 days of exclusivity to complete tax analysis and due diligence on the acquisition. This will expire on 16 October and extends the 90-day period the company granted on 18 May when it revealed it had received a non-binding proposal for the acquisition of the subsidiary that holds its entire solar portfolio. “To date, diligence by the buyer has progressed materially including accommodating an extensive schedule of site visits,” USF said. USF shares jumped from 27 cents to 36 cents when the approach was announced three months ago. They closed last week at 34 cents, valuing the company at $110m (£81m) and leaving the shares on a 43% discount to net asset value.
GCP Infrastructure (GCP) has received £31.5m after one of its lower-returning loans secured against a portfolio of UK renewable energy projects was repaid early as a result of the borrower being acquired. GCP said it would use the proceeds to continue buying back shares that stand around 18% below net asset value. GCP did not say which loan this was but Winterflood analyst Ashley Thomas believed it was one backed by six solar and two wind farms originally owned by Good Energy Group that were bought by Bluefield Solar Income last summer before BSIF was acquired by Drax Group in June.
James Carthew, head of investment company research at QuotedData, said: “GCP has been making good progress with its capital recycling programme but the discount is still wider than the level at which it would start to favour new investments over buybacks. This deal provides more ammunition to tackle the issue.”
Develop North (DVNO), a £19m regional investment company, says chief executive Michelle Percy has now joined the board seven months after the former Newcastle City Council director was appointed. She is independent of its three asset managers Tier One Capital Ltd, Broadoak Asset Management and Homes or Houses.
