Octopus Proposes Merger with AERS to Create Largest London-Based Renewable Energy Trust
- Octopus Renewables Infrastructure Trust plc is proposing a merger with Aquila European Renewables plc, to create one of the largest London-listed renewable energy investment trusts, expected to have a market capitalisation of GBP 745 million. ORIT awaits AERS' response as they enter into further discussions in the New Year.
Octopus Renewables Infrastructure Trust plc has proposed a merger with Aquila European Renewables plc in a bid to create one of the largest London-listed diversified renewable energy investment trusts. The combined entity is expected to have a combined market capitalisation of about GBP 745 million and a portfolio of European renewable energy assets, including wind, solar, hydro, green hydrogen and battery storage. ORIT has tried unsuccessfully to engage with AERS several times and now looks forward to further expected interaction over the coming weeks, though there is no certainty that a final agreement will be reached. AERS has confirmed it has received the proposal and its board will consider it as part of a wider assessment process in the New Year.
Will Octopus & Aquila Merge to Create Largest London-Listed Renewable Energy Trust?
- If the proposal is approved, the merged entity would become the largest London-listed renewable energy trust.
- The combined entity is expected to have a total portfolio of over 6.2 gigawatts (GW) of installed capacity, across more than 1,000 individual renewable energy assets.
- The portfolio is expected to have a geographic spread across 13 countries in Europe, with a focus on the UK, Ireland, Spain, Italy, France, Germany and the Netherlands.
- The combined entity is expected to have a strong balance sheet, with the cash and short-term investments of both companies expected to exceed GBP 300 million.
- The merged entity would also have an experienced management team, including the executive teams from both ORIT and AERS.
- The proposed merger is subject to regulatory and shareholder approval.
