Business Irish

Sunday 24 September 2017

NTR to spin out its wind business into new company

NTR boss Rosheen McGuckian
NTR boss Rosheen McGuckian
Peter Flanagan

Peter Flanagan

NTR is to split off its European wind energy business and offer a multi-million euro share redemption in a dramatic reorganisation of the company.

The conglomerate will dump the toll roads business which gave it its original name, along with its other interests into a holding company that will be named Altas Investments.

The wind energy division meanwhile will be transferred into a new company which will be named NTR Plc.

Altas will have a separate leadership team. Current NTR boss Rosheen McGuckian will transfer to the new business.

When asked if Altas will be eventually run down, an NTR spokesman said it "will be a standalone business with an objective to optimise value over the midterm".

As part of the deal, NTR investors will be allocated shares in the new company in the same proportion as their holding in the current NTR.

NTR will formally propose the plan, which will require shareholder and court approval, at an extraordinary general meeting on September 9.

In a statement, NTR said it was proposing that "the European wind business will be demerged from other parts of the Group into a new holding company".

It added: "The new holding company will hold the European wind business following the demerger and will also hold cash to fund the share redemption.

"Immediately following the demerger, the existing shareholders in NTR Plc will hold shares in the new holding company in the same proportion to the NTR shares that they hold at the time of the demerger.

"Shareholders may apply to have all (but not part) of their shareholding in the new holding company that holds the European wind business redeemed and to receive a redemption payment of €2.25 per share," the company added.

"This is equivalent to c.€219.1m if all shareholders were to apply to participate in full in the redemption. Subject to certain eventualities which are outside of the control of the company, this amount may increase by up to a further c.€6.8m - €13.6m if potential receipts relating to solar payments were to be received by the group in advance of the High Court approval," NTR said.

A number of major shareholders in NTR have already agreed to retain their shares, including Dreamport Ltd, which holds 38pc of the firm.

Other shareholders, including investment firm One51 and Pageant Holdings have indicated they will cash in their shares. One51 is itself the subject of a takeover bid from the investment firm CapVest.

Irish Independent

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