Atlantis - cracking deal brings in cash, ongoing support and a credible new infrastructure investor

The global developer of sustainable energy projects has signed a Heads of Terms to sell a 25% shareholding in its Uskmouth Conversion Project to a leading infrastructure fund for £32.9m in cash. In addition to this cash payment the new partner will fund 25% of the project going forward. The proceeds from this sale can be used to fund SAE’s share of the project, thereby limiting future dilution, which is extremely positive for existing shareholders. This is a terrific deal for Atlantis highlighting the value of its power station conversion project and the Group as a whole, which up to now appears to have been ignored by the stock market. Indeed, the implied valuation of Uskmouth from this deal is equivalent to approximately 36p per share of value alone.