Arcapita exits wind farm in second deal this week

Prudential M&G’s infrastructure arm Infracapital Partners and an unnamed group advised by JP Morgan Asset Management have bought a one third stake in wind farm Zephyr Investments from Arcapita Bank, in the Bahrain-based investor’s second deal this week.

Bahrain-based Arcapita Bank has sold its one third stake in Zephyr Investments for £145 million ($290 million, €213 million) to Infracapital Partners, the infrastructure arm of Prudential M&G, and an unnamed investment group advised by JP Morgan Asset Management.

Each of the purchasers, who are already shareholders in Zephyr, will acquire 50 percent of Arcapita’s investment in the wind farm group.

Zephyr has a portfolio of 17 wind farms in the UK with a combined capacity of 391MW. It provides around 20 percent of wind energy production in the country.

Arcapita acquired a one third stake in Zephyr in 2004 alongside power company RWE and buyout firm Englefield Capital.

Chief executive Atif Abdulmalik said in a statement that the deal would be one of Arcapita’s most profitable investments to date, although he did not disclose returns.

The bank had planned to list the stake on the Singapore stock exchange alongside South Staffordshire Water. However, Arcapita’s spokesperson said: “It became clear that the companies’ private market values were likely to be higher.” South Staffordshire Water is expected to be sold for around £200 million.

Arcapita bought window and door company HT Troplast on Friday from The Carlyle Group and Advent International for €800 million ($1.1 billion).

Arcapita’s corporate arm operates like a private equity buyer. However, it does not raise funds – instead it makes transactions from its own balance sheet and syndicates the investment to buyers across the Middle East.