3i Infrastructure to sell Attero stake at a 31pc premium

3i Infrastructure announced its intention to sell its approximately 25% stake in Attero - a waste treatment and recycling company based in the Netherlands - to Ardian Infrastructure on Monday.

The FTSE 250 firm said that as part of the deal, Ardian Infrastructure was planning to acquire the entire ownership of Attero from 3i Infrastructure and its co-investors, including funds managed by DWS at around 50%, and other funds managed by 3i Investments at around 25%.

It said the expected net proceeds would be around €215m, representing a 31% uplift from the valuation of €164m reported on 31 March.

The sale remained subject to certain conditions, including works council consultation and receiving clearance from the European Commission under the EU Merger Regulation.

3i Infrastructure said it expected completion of the sale in the fourth quarter, adding that once finalised, the proceeds would be used to partially repay its revolving credit facility.

Attero holds a prominent position as the leading operator in the Dutch waste treatment and recycling market, 3i explained.

It boasts two of the largest and most efficient energy-from-waste plants in western Europe, anaerobic digestion plants facilitating biomethane production, composting facilities, mineral recycling and depository locations, post-separation installations, and plastic recycling capacity capable of processing up to 25,000 tonnes of used plastic annually, converting them into high-quality granulates.

Over the years since 3i Infrastructure's investment in 2018, Attero had experienced significant growth, with a new 120MW turbine inaugurated in 2018 adding the capacity to generate enough electricity in one hour to power a household for 25 years.

Additionally, it opened a new polymer recycling plant in 2019, further bolstering its recycling capabilities.

3i also noted that Attero's EBITDA had nearly doubled during the period.

Looking ahead, 3i Infrastructure said Attero was well-positioned to capitalise on several growth opportunities, as it aimed to implement carbon capture technology for its two EfW plants.

It was also planning to expand its anaerobic digestion business, and had plans to establish solar farms on its closed landfill sites.

“Attero has been a most successful investment for the company, experiencing substantial growth during our investment period,” said chair Richard Laing.

“Whilst 3i Infrastructure aims to hold its investments over the longer term, we will sell investments where this generates significant additional value for our shareholders.”

Reporting by Josh White for Sharecast.com.