23 August 2016
STAR Capital Partners (“STAR”) has today announced the completion of the sale of its STAR II funds’ 51% shareholding in ElecLink to Groupe Eurotunnel SE (“GET”) for €75 million.
ElecLink was originally established in 2011 as a joint venture between STAR and GET. Since then the shareholders have worked together to bring this strategic infrastructure from an initial idea to a fully developed project ready to be constructed.
Today ElecLink has all the regulatory permissions required to build, own and operate a privately funded 1000MW High Voltage DC electrical interconnector (“the Interconnector”) connecting the UK and France through the Channel Tunnel. In addition, the project has secured grid connections, engaged highly credible Engineering Procurement Construction counterparties to construct the link and has the strong support of the European Union through its status as a European Project of Common Interest (“PCI”). ElecLink will soon progress to a capacity auction and financing and, once operational, the Interconnector will contribute to the security of energy supply between the two countries.
Commenting on the disposal Uniti Bhalla, Managing Partner at STAR said:
“We had a strong belief in the underlying, long-term drivers that supported the creation of this highly strategic asset, which will deliver additional capacity to the grids of both countries as they embrace alternative, sustainable sources of power. This project continues STAR’s 16 year history of investing in the development and growth of high quality capital intensive businesses. We have enjoyed working in partnership with the management team and with Groupe Eurotunnel and look forward to watching what was just an initial concept built out into a fundamental part of Europe’s transmission infrastructure.”
Tony Mallin, Chairman of STAR, said:
“This transaction will provide a return of over 6x and an IRR of 114%, a result consistent with the excellent returns that the STAR Funds’ have delivered for investors. We continue to deliver unique and differentiated investments and look forward to maintaining this out performance.”