UK-listed Infrastructure and private equity investment manager Foresight Group is acquiring Australian manager Infrastructure Capital Group for up to A$140m (€94m).
Foresight is offering an initial payment of A$105m for Infrastructure Capital which is to be paid 50% in cash and 50% in newly issued Foresight shares.
Foresight also expects to make two separate performance-related payments of up to A$35m and up to A$25m in cash and shares.
Infrastructure Capital is currently owned by Log Creek (63.3%), other non-management shareholders (3.8%) and management (32.9%).
Infrastructure Capital offers investment management and asset management products and services to an established client base of Australian and international institutional investors. The company manages £2.8bn (€3.3bn) of assets under management and £1.8bn of funds under management.
London-listed Foresight, which has £9.4bn in managed assets, operates from 12 offices across six countries in Europe and Australia with
Foresight said the combined group is expected to be one of the ”leading independent renewable generation and infrastructure investors in Australia and will benefit from enhanced product and distribution capabilities”.
Bernard Fairman, executive chairman of Foresight Group Holdings, said: “We have been in Australia since 2015 and know that Infrastructure Capital, with its significant infrastructure presence and strong institutional client base, is a highly complementary fit for the group.”
Fairman said the acquisition delivers ”geographic diversification and enhanced distribution channels” for Foresight’s existing funds.
Mike Fitzpatrick, a majority shareholder of Infrastructure Capital, said: “As part of the combined group, Infrastructure Capital will offer a wider range of products developed from a deeper talent pool, responding to the consolidation in the institutional market. Both firms have a long and deep commitment to renewables, which will continue to be a focus.”
Tom Laidlaw, CEO of Infrastructure Capital, said: “The bringing together of two respected and highly regarded infrastructure managers will be beneficial to all our stakeholders.
“We will continue to manage the business as usual with the added benefit of having access to Foresight’s expertise, global footprint and product offerings.”
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