Wind energy company Airtricity plans to raise €250 million in funding in a deal that values management's one-third stake in the business at €180 million.
In a shake-up of the company's ownership structure, Quinn Group plans to sell its 13 per cent stake in the firm for €69 million, close to twice the €35 million it paid for its shares two years ago.
Quinn will sell its 4.2 million shares in Airtricity Holdings, the company's parent, to existing shareholders. Airtricity will also issue new equity valued at €250 million.
Airtricity's biggest shareholder, utility group NTR, will invest €127.5 million. This will maintain its 51 per cent shareholding in the alternative energy company.
A new investor, British investment firm Ecofin, will spend €122.5 million on a 16 per cent stake in the group.
An Airtricity statement yesterday said the fundraising placed a pre-investment value of €550 million on the company. Once the fundraising is completed, it will be worth €800 million.
A spokesman said management, including founder and chief executive Eddie O'Connor, held one-third of the group.
The fundraising values their entire stake at €183 million. If the executives maintain that holding through the purchase of extra shares, it will be worth €266 million after the fundraising is completed.
Mr O'Connor holds about 3 per cent of the company in his own name. That is now valued at €16.5 million. It was not possible yesterday to establish if he holds further shares indirectly.
Quinn Group holds its 13 per cent stake through its insurance arm, Quinn Direct. The group's managing director, Seán Quinn, yesterday said the investment was not part of the conglomerate's core business.
"We have now decided to take the opportunity to reinvest our capital in our core business and expanding our property portfolio in eastern Europe," Mr Quinn said.
Airtricity will use the cash it raises to fund its expansion in the US, the domestic market and in the UK.
The company has windfarms throughout Ireland, including the country's biggest offshore development on the Arklow Bank, off the Wicklow coast.
It is developing one of Europe's biggest windfarms at Ardrossan in the west of Scotland. It has also recently moved into the US. It has 45,000 commercial customers in Ireland.
Its new investor, Ecofin, is based in New York and London. It specialises in investing in utility and infrastructure industries. The company manages assets worth in the region of $1.7 billion (€1.3 billion).
NTR is best known for its toll roads business. However, the company has expanded beyond that into general utilities and waste management. Recently it launched a new biofuels division on which it plans to spend €120 million initially.
Quinn has interests in cement, glass, radiators and insurance.
