UK Power Reserve up for sale

Flexible generation company has reportedly begun informal talks with some potential investors

Flexible generation company UK Power Reserve has put itself up for sale, the Telegraph has reported.

RBC Capital began sending out a sales prospectus in recent days, according to unnamed sources quoted by the paper, and UK Power Reserve (UKPR) has already kicked off informal talks with some potential investors.

The sales documents, seen by the Telegraph, show the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) are predicted to swell from £16 million this year to £44 million next year and £71 million by 2020.

UKPR is part way through building out an 813MW portfolio of flexible generation assets after winning new build capacity market contracts for more than 500MW of small peaking plants, consisting of fleets of gas-fired reciprocating engines, and 120MW of battery storage.

The company expects the total size of its portfolio to rise to 1GW over the next year and the size of its battery storage portfolio to triple by 2020.

Meanwhile, Reuters has reported that the sale has garnered interest from at least two-state owned Chinese network companies. Sources told the news agency the firms included State Grid Corp and China Southern Power Grid.

UK Power Reserve declined to comment on both reports.

Private equity firms Inflexion and Equistone both invested in the company as part of a management buyout deal in 2015.

Author: Tom Grimwood,
Channel: Finance & investment

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