Energy firm completes £6m fundraise for H&W

InfraStrata has announced the completion of a £6m fundraise for the acquisition of Belfast shipyard Harland and Wolff.

Monday, 11th November 2019, 3:01 pm
PACEMAKER PRESS BELFAST 3/10/2019 Staff at Harland and Wolff. Photo Laura Davison/Pacemaker Press

The sum was raised through the placing of Ordinary Shares through both institutional and retail investors.

The acquisition is conditional upon approval by shareholders at the company’s general meeting, which is due to take place on November 29.

John Wood, CEO of InfraStrata, said: “We are very pleased with the result of the placing bookbuild as this will provide us with the necessary capital to complete the acquisition of the Harland and Wolff assets.

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“The company is now on the cusp of a transformational change. Along with the cost savings that will accrue to the Islandmagee gas storage project, this multi-purpose fabrication facility in the heart of Belfast is expected to provide multiple revenue streams.

“Upon completion of the acquisition, the company will seek to enter into contracts as soon as possible with a view to kick-starting revenue generation, which will be a significant milestone in the company’s history.

“We wish to welcome our new institutional investors into the company in what is going to be a very exciting period for the growth and development of the overall business.

“Equally, we wish to thank our existing shareholders for their on-going support. Subject to shareholder approval at the upcoming general meeting and upon admission of the new shares on AIM, the company will have an excellent mix of institutional and retail investors, which we expect will provide long run share price stability and liquidity respectively.

“The fact that key institutions have sought to make their investment in the company is a vote of confidence for our future growth plans and overall business strategy that focuses on completing the Islandmagee project and asset development, construction and operations management and asset lifecycle management.

“The company remains on track to complete its debt capital raise to complement this equity raise. Debt capital will take the form of asset backed finance and working capital trade finance, both of which we expect to come to fruition soon after completion of the acquisition.

“We are bullish about the acquisition as it provides immediate and near-term revenue generating opportunities as well as significantly increasing the value of the company’s balance sheet.”

Last month, he stated: “Harland and Wolff is a landmark asset and its reputation as one of the finest multi-purpose fabrication facilities in Europe is testament to its highly skilled team in Belfast.

“This acquisition is a function of deep operational synergies between the various business segments of the company with Harland and Wolff underpinning the construction economics of the Islandmagee Gas Storage Project and other future projects.

“Our Islandmagee Gas Storage Project will benefit greatly from their expertise in the energy sector, both technically and economically, and we look forward to growing the workforce significantly in the coming years.

“While our core priority will be to deliver our flagship project in Islandmagee, we believe there are opportunities to welcome potential new clients due to the diverse skill set at the facility. This acquisition will clearly provide substantial advantages through vertical integration in addition to demonstrating our commitment to the Northern Irish economy.”

The Islandmagee storage facility under Larne Lough will consist of eight underground caverns, capable of storing a total of 450 million cubic metres of gas in Permian salt beds.

The Department of Agriculture, Environment and Rural Affairs (DAERA) has been urged to carry out an independent study before making a decision on the application. The proposal would involve drilling a mile underneath Larne Lough which has been designated by DAERA as an Area of Special Scientific Interest.