Simec Atlantis raises enough funds to complete £125m highlands takeover bid

Green Highland Renewables has several hydro plants across the north of Scotland
Green Highland Renewables has several hydro plants across the north of Scotland

Analysts have stated that Simec Atlantis has now raised enough funds to complete its proposed £124.7m takeover of Green Highland Renewables (GHR).

Last week Simec Atlantis Energy announced it has raised £5million through share placing, which Cantor Fitzgerald said now means it will be able to bring enough finance to complete the deal.

It comes after Simec Atlantis also agreed to sell a 25% stake in the Uskmouth power plant in November, expected to raise £32.9m.

Cantor Fitzgerald said GHR will produce cash from day one following the deal, and not need to raise any additional funding to achieve its targets.

The firm is expected to reach pre-tax profits of £21.5m in 2021, according to Cantor’s investor note.

GHR has dozens of hydro plants across the north of Scotland, and was bought by the GFG Alliance, owned by the billionaire Gupta family, in November 2017.

Simec Atlantis, the firm behind the pioneering MeyGen tidal project, one of the world’s most advanced tidal arrays, is also associated with GFG, which took a 50% stake in it in 2017.

This transaction represents a “related party transaction” under stock exchange rules as it involves a deal with a related party.

Cantor Fitzgerald said in its note that it expects the deal to be completed before July.

Following the deal’s announcement last year, Simec Atlantis CEO Tim Cornelius said: “Not only will this acquisition have a positive cash flow positive impact on our group in the first year and deliver generation diversification, it validates the Atlantis relationship with our strategic shareholder, Simec, and it gives us access to one of the most accomplished and respected hydro development teams in the UK.”