Transaction: Acquisitions
Date: August 2016
Deal value: GBP 150 million
Process: Structured auction
Industry: Energy and utilities

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FIH Partners advised the Danish pension fund PKA on the acquisition of 50% of the biomass-fired combined heat and power plant Tees Renewable Energy Plant (Tees REP) in the UK. The biomass power plant will have a capacity of 299MW and will be fuelled by wood pellets and chips.

The power plant has been developed by MGT Power and is located in North-East England near Middlesbrough. The power plant is expected to be in operation by 2020.

The power plant will be constructed under a fully turn-key contract for engineering, procurement and construction via a joint venture of Samsung C&T and Tecnicas Reunidas, an operations and maintenance agreement with Fortum and a fuel supply agreement with Enviva.

Total investment in Tees REP is expected to be approx. GBP 900 million. PKA is investing approx. GBP 150 million and will hold 50% of the equity with Macquarie Capital holding the remaining 50%. In addition, more than GBP 650 million of senior debt has been raised to finance the project.

FIH Partners acted as exclusive financial advisor to PKA.