InfraRed preps sale of Green Frog

28 October 2019 - 12:00 am UTC

InfraRed Partners has mandated Evercore to undertake a sale of the gas-fired power generation business held by its majority-owned UK-based flexible power generation company Green Frog Power, four sources familiar with the matter and an investor tracking the deal told sister titles SparkSpread and Mergermarket.

Green Frog underwent a Rothschild-advised sale attempt in 2017, which ultimately stalled due to concerns around the UK’s Capacity Market regulatory framework and Green Frog’s carbon-heavy portfolio mix.

Whereas the previous sale regarded the entirety of Green Frog, including its diesel-fired power generation assets, this relaunch is ringfenced around the operational gas-fire power generation portfolio, three of the sources said.

This portfolio, which is controlled via a separate holding structure, has over 300MW of installed capacity, one of the sources added.

The new sale process will be launched early in 2020, the four sources said. In 2018, The European Court of Justice imposed a standstill on the UK Capacity Market to allow for a state aid investigation. However, last Thursday (24 October), the UK government received approval from the European Commission regarding reinstatement of the Capacity Market.

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