Denham Capital and Nexif agree to sell Nexif Energy’s portfolio to RATCH Group PLC|
- Sale of company to RATCH Group PLC for $605 million
- Nexif Energy owns 2,670MW of power generation assets in Australia and Southeast Asia
- A new Nexif-RATCH joint venture will manage and grow the portfolio after the acquisition.
Singapore — August 17, 2022 — Denham Capital and Nexif announce the signing of a share sale agreement with Thailand’s RATCH Group PLC for Nexif Energy’s portfolio of Australian and Southeast Asian energy assets. The transaction values Nexif Energy’s portfolio at an enterprise value in excess of US$1 billion (transaction equity value of US$605 million).
Denham Capital, the global energy transition investment firm, and Nexif, the renewables focused power development and investment company, founded Nexif Energy in August 2015 to acquire, develop, construct and operate a clean energy-focused power generation and battery storage portfolio across Australia and Southeast Asia while maintaining the highest environmental and social standards.
Capitalizing on the expertise, brand, and capital backing of its sponsors, Nexif Energy has built an attractive project portfolio with a total capacity of close to 2.7GW. Of this, nearly 500MW is currently operational or under-construction, increasing to c.1.3GW operational or under-construction by 2023, and a further c.1.4GW at various stages of development.
Nexif and RATCH will work together to manage and continue to grow the Nexif Energy portfolio through a new Nexif-RATCH joint venture following completion of the transaction.
The sale of Nexif Energy’s portfolio represents Denham Sustainable Infrastructure’s 7th platform exit, comprising over 70 assets and c.7,000 MWs, across the US, Europe, Australia, and select non-OECD markets. It demonstrates the continued success of Denham’s Sustainable Infrastructure investment strategy to acquire and build market-leading companies. In the case of the Nexif Energy portfolio, Denham has worked hand in hand with Nexif and its team to develop energy and critical power generation and battery storage assets.
Nexif and Denham Capital have executed on their strategy to develop sustainable generation assets across Australia and Southeast Asia and, working in partnership, have built a strong pipeline of projects with positive security of energy supply and economic and environmental impacts for stakeholders across their respective regions.
Nexif Energy has developed hybrid power solutions combining multiple renewable and gas-fired thermal generation technologies, in combination with energy storage, to establish a differentiated offer in several countries in its target geographies. This kind of hybrid model will be increasingly common around the globe.
For example, Nexif’s Lincoln Gap Wind Farm project in South Australia, a 222MW initiative comprising 212MW of wind turbines and 10MW of battery storage, is capable of producing enough electricity to power approximately 155,000 households in South Australia.
Elsewhere, Nexif Energy has further demonstrated its ability to deliver clean, reliable power across its target markets through hydropower projects in Vietnam, solar projects in the Philippines, and a 98MW combined cycle power project in Thailand.
Denham Capital Managing Director Saurabh Anand commented:
“We are proud of what we have built through our investment in Nexif Energy which has grown to comprise an impressive pipeline of nearly 3GW of renewable power generation and storage assets. This sale represents our second successful exit in both Australia and the Philippines. With its unique approach to hybrid power solutions, sizeable wind and gas projects in South Australia, hydropower projects in Vietnam and solar farms in the Philippines, Nexif Energy is perfectly positioned for its next phase of expansion, under the Nexif-RATCH partnership. Nexif Energy has been central to executing our vision for sustainable growth and value creation in the region via investment in low-cost, low-carbon power. The sale adds to Denham’s impressive track record and is testament to our successful investment strategy of building world-class companies in partnership with management teams.”
Nexif Founder and Managing Director Matthew Bartley said:
“Nexif Energy executes on a market need based strategy. In Australia, we have developed and implemented a firmed renewable strategy around the Lincoln Gap Wind farm supported by Snapper Point gas fired Peaker and BESS play. Furthermore, in Vietnam, we’ve delivered a project based on small Hydroelectric generation with peak storage together with onshore and offshore wind and solar and in Philippines an innovative long term contract structure for solar in an open access market. In Thailand, we have delivered a cutting-edge technology backed cogeneration project achieving the highest energy efficiency in the country.”
Nexif Founder and Executive Chairman, Surender Singh added:
“We started this journey of Nexif Energy to develop and acquire renewable energy focused power generation portfolio across Southeast Asia and Australia in August 2015 in partnership with Denham Capital. l am proud to have delivered a successful business and solid returns. We look forward to working with RATCH Group to continue to grow the Nexif Energy platform”
About Denham Capital
About Denham Founded in 2004, Denham Capital is a global Energy Transition investment firm, having raised more than $12 billion of capital across multiple sectors. Specializing in private equity, infrastructure and credit, we invest in sectors that are central to the economic and resource transitions happening globally. We deliver the metals and minerals and sustainable infrastructure needed for today and tomorrow. Denham Capital sponsors entrepreneurs, delivering the financial resources and industry expertise needed to create and grow successful infrastructure and resource businesses. We seek to establish long term partnerships with entrepreneurs and companies who share our vision for growth and value creation. Our investment teams have extensive renewable power, infrastructure and mining investment experience, including technical experience as engineers, operators, and business owners. Our firm is built on a foundation of experience, fairness, economic rationale, flexibility and trust, and we bring these values into every opportunity we pursue. We believe our tactical familiarity within our industry sectors along with a disciplined approach centered around fairness and shared success make us an ideal partner. For more information, visit denhamcapital.com/sustainable-infrastructure
Nexif Energy was formed in August 2015 when Nexif, a Singapore-based independent power company, partnered with Denham Capital, a leading global energy-focused private equity firm to establish a platform to develop, finance, construct and opportunistically acquire conventional and renewable power generation assets across Asia and Australia. Prior to that, Nexif managed InfraCo Asia, a UK, Australian and Swiss Government backed infrastructure development company through its subsidiary Nexif (InfraCo) Management. For more information about Nexif and Nexif Energy, visit www.nexifenergy.com
|Denham Capital||Elizabeth Adams