EFG Hermes subsidiary sells UK solar portfolio

LONDON (Reuters) - Vortex Energy, a subsidiary of the private equity arm of EFG Hermes HRHO.CA, has completed the sale of its controlling stake in a 365 megawatt solar PV portfolio in Britain, EFG Hermes said on Thursday.

The stake was sold to TNB International, a subsidiary of Tenaga Nasional Berhad TENA.KL, one of Southeast Asia’s largest utilities, with an enterprise value of around 500 million pounds ($647 million).

The portfolio of solar PV assets in Britain, called Vortex III, has an average asset life of six years and power purchase agreements in place with large European energy companies, EFG Hermes said.

“This is a major milestone for Vortex. The exit of Vortex III delivered a 1.5x cash-on cash-multiple to our investors and an internal rate of return of around 14%,” said Karim Moussa, head of private equity and asset management at EFG Hermes.

Vortex Energy had a portfolio of wind and solar assets of 822 MW valued at around 1.3 billion euros at the end of 2018.

Reporting by Nina Chestney