Gresham House PLC Proposed Acquisition of Hazel Capital LLP (6109F)
19 May 2017 - 4:00PM
UK Regulatory
TIDMGHE
RNS Number : 6109F
Gresham House PLC
19 May 2017
19 May 2017
Gresham House Plc ("Gresham House" or "the Company")
(AIM: GHE)
Proposed Acquisition of Hazel Capital LLP, the Renewable Energy
Infrastructure Asset Manager, and Loan Investment
Gresham House, the specialist asset manager, is pleased to
announce that it has entered into exclusivity arrangements and
conditional heads of terms (the "Agreement") to acquire Hazel
Capital LLP ("Hazel Capital"), a leading UK asset manager of new
energy infrastructure.
The proposed acquisition, expected to complete in the third
quarter of this year, is in line with Gresham House's strategy to
grow both organically and through acquisition, and is highly
complementary to Gresham House's existing Real Assets division and
the objectives of the recently announced British Strategic
Investment Fund. The acquisition is intended to be funded using
shares issued at a premium to the current share price, plus a
deferred earn out in cash and shares. Gresham House has been
granted a period of exclusivity until 31 December 2017 to finalise
its due diligence and the terms of the proposed acquisition.
Hazel Capital advises on more than GBP100 million of assets with
a product portfolio including Venture Capital Trusts ("VCT") and
Enterprise Investment Schemes ("EIS") designed to generate
attractive yields with downside protection provided by strong real
asset backing. The Hazel Renewable Energy VCTs launched in 2010
have achieved market leading performance, with net returns of over
50% before any tax benefit considerations.
In conjunction with the Agreement and following ongoing due
diligence, Gresham House has agreed to provide growth capital in
the form of a secured loan ("the Loan") to Hazel Capital during the
exclusivity period for up to GBP4.6 million, including arrangement
fees, to develop its immediate pipeline of Energy Storage System
("ESS") projects. The Loan accrues interest in-line with Gresham
House's criteria and is secured against Hazel Capital. Full
repayment is due on or before 31 December 2017.
Further announcements will be made as appropriate in due
course.
Tony Dalwood, CEO of Gresham House, said:
"We see a substantial growth opportunity in renewables and new
energy infrastructure-related assets and today's announcement is
the first step towards bringing a recognised expert investor in
this growing sector into our Group. Hazel Capital's success in
generating market leading returns through its VCT and EIS platform
within the growth areas of infrastructure related asset management,
fits well with our strategy to develop our range of alternative and
illiquid investment solutions for long term investors."
Ben Guest, Managing Partner of Hazel Capital, said:
"In Gresham House, the Hazel Capital team has found an exciting
new home to realise its future growth potential in the new energy
and infrastructure markets. The complementary skills,
entrepreneurial drive and overlapping investment philosophy ensures
an excellent fit. We are very excited about our future as part of
Gresham House."
ENDS
Background
Hazel Capital is an FCA authorised asset management business
focused on the rapidly growing new energy infrastructure sector and
was founded ten years ago by Ben Guest after a successful fund
management career at Lazard Asset Management and hedge fund manager
Cantillon Capital. Since 2010, it has developed or acquired c.300
megawatts (MW) in the UK solar market across 28 projects.
In 2015, Hazel Capital entered the battery storage or ESS market
as well as the electric car charging infrastructure markets. Hazel
Capital has been developing ESS projects, combining battery
technology and engines, for the purpose of offering "Grid
Enhancement" services to the National Grid which are expected to
grow to at least 1GW over the next ten years. There is also the
opportunity to offer alternative services to the National Grid
including load/peak shifting and other services which have a
potential market size significantly above 1GW.
In 2017, Hazel Capital is expecting to commission three ESS
projects serving the National Grid, totaling 85MW. The first 20MW
project became commercially operational in May 2017.
Each ESS project is grid-connected, typically with a lease of 25
years which matches a planning permission for the same duration.
Each project is expected to operate throughout this period subject
to market conditions and enjoys multiple revenue streams.
Further details can be found on Hazel Capital's website:
www.hazelcapital.com
Enquiries
Gresham House plc +44 (0) 20 3837
Anthony (Tony) Dalwood 6270
Liberum Capital Ltd +44 (0) 20 3100
Neil Elliot/Jill Li 2000
Montfort Communications greshamhouse@montfort.london
Gay Collins/Rory King +44 7798 626282
+44 203 770 7906
Note
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public domain. If
you have any queries on this, then please contact John-Paul
Preston, Chief Operating Officer of the Company (responsible for
arranging release of this announcement) on +44 (0) 20 3837
6270.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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