Terra Firma approaches UK renewable energy group

Terra Firma is preparing a takeover bid for London-based Novera Energy Plc through its renewable energy portfolio company Infinis.Terra Firma, the buyout group run by Guy Hands, joins 3i Infrastructure which has been circling AIM-listed Novera since February when it acquired a 10% stake in the company and announced it was considering a full bid.

3i is proposing to pay 90p per share which would value Novera’s share capital at £112m. Any take-private deal being given the green light is conditional upon the resolution of a legal dispute between Novera and Waste Energy Group, formerly owned by Terra Firma.

Terra Firma acquired Infinis in 2003 as a division of parent group Waste Recycling Group. It demerged Infinis in 2006 when it divested the larger Waste Recylcing Group to Spanish construction group FCC. Last autumn, Terra Firma scrapped plans to float Infinis. The IPO had been expected to value the company at over £700m.

Novera generates electricity from landfill gas and also develops and operates wind farms, with the latter activity the primary focus of its expansion plans. Infinis is also aiming to increase the size of its own wind portfolio.