REG - Triple Point Energy - Completion of Asset Sale

Triple Point Energy TransitionAnnouncement

24/06/2024 07:00

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RNS Number : 4636T  Triple Point Energy Transition PLC  24 June 2024

24 June 2024

 

Triple Point Energy Transition plc

("TENT", the "Company" or together with its subsidiaries, the "Group")

 

Completion of Asset Sale

 

Triple Point Energy Transition plc (ticker: TENT), announces the disposal of
the Group's three combined heat and power ("CHP") loan assets ("CHP
Portfolio").

Background

Harvest Generation Services Ltd ("Harvest"), Glasshouse Generation Services
Ltd ("Glasshouse") and Spark Steam Ltd ("Spark Steam") are CHP businesses
which supply heat, electricity and carbon dioxide to an on-site tomato grower.
In March and June 2021, TENT provided these companies with loans totalling
£29 million. P3P Partners LLP ("P3P Partners") is the owner of the on-site
tomato grower and also of Harvest, Glasshouse and Spark Steam. When P3P
Partners acquired the on-site tomato grower in January 2023, TENT negotiated
to receive a cash sweep in respect of the loans at Harvest and Glasshouse, to
accelerate the repayment of the loan from profits generated. As reported in
the circular sent to shareholders on 5 March 2024, the aged debtor profile of
receivables of the CHP businesses has worsened since the interim results,
reflecting delayed payments by the on-site grower.

Sale Terms

P3P Partners has offered to refinance the CHP Portfolio, comprising loans to
Harvest, Glasshouse and Spark Steam, repaying a total of £17.5 million. The
offer is comprised of an immediate payment of £14.5 million and three
subsequent payments of £1 million, to be received on 30 September 2024, 30
June 2025 and 30 September 2026. The £3 million deferred payment is not
contingent and is not expected to delay the completion of the managed
wind-down and delisting of TENT. The outstanding principal and capitalised
interest as at 31 March 2024 across all three loans was £23.1 million,
resulting in an impairment of £6.1 million.

Rationale

The Board notes that P3P Partners accounts for 100% of the income of the CHP
businesses, owns the equity and operates the assets and, therefore, is the
most obvious source of repayment for these loans. Discussions were held with a
number of other potential acquiring parties, and the offer from P3P Partners
resulted in the best value that could be obtained for shareholders.

The Board is cognisant of the decline in the on-site grower's financial
position and, based on third party advice, believes that the full loan balance
is unlikely to be fully recoverable and, therefore, is confident that the
offer made by P3P Partners reflects the better outcome for shareholders.

The Board believes that TENT remains on track to realise the remainder of its
assets over the course of the financial year ending 31 March 2025.

John Roberts, the Company's Chair commented:

"Following shareholder approval for a managed wind-down, we are pleased to be
making prompt progress in realising shareholder value from the Group's
portfolio, with this refinancing reducing the number of investments within the
Group's portfolio by three. Thus far we have realised £61 .6 million,
providing 92% of the value of those investments. We will continue to update
the market as we proceed with our plans for returning value to shareholders."

For further information, please contact:

 Triple Point Investment Management LLP   +44 (0) 20 7201 8989

 Jonathan Hick

 Christophe Arnoult

 Chloé Smith

 J.P. Morgan Cazenove (Corporate Broker)  +44 (0) 20 3493 8000

 William Simmonds

 Jérémie Birnbaum

 Akur Limited (Financial Adviser)         +44 (0) 20 7493 3631

 Tom Frost

 Siobhan Sergeant

LEI: 213800UDP142E67X9X28

 

Further information on the Company can be found on its
website: www.tpenergytransition.com (http://www.tpenergytransition.com/)

NOTES:

The Company is an investment trust which was established to invest in assets
that support the transition to a lower carbon, more efficient energy system
and help the UK achieve Net Zero.

The Investment Manager is Triple Point Investment Management LLP ("Triple
Point") which is authorised and regulated by the Financial Conduct Authority.
Triple Point manages private, institutional, and public capital, and has a
proven track record of investment in energy transition and decentralised
energy projects.

On 22 March 2024, shareholders approved the Company's proposed orderly
realisation of assets. Details of future divestments or returns of capital
will be announced via a Regulatory Information Service in due course.

 

 

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