London, UK-based Ancala Partners, an independent mid-market infrastructure investment manager, has agreed to acquire a 50% interest in HS Orka, Iceland’s largest private electricity generator, from Jarðvarmi, a consortium of 14 Icelandic pension funds. Ancala has made the investment on behalf of Ancala Infrastructure Fund II, Ancala’s second mid-market focused infrastructure fund.
The transaction follows Jarðvarmi’s exercise of its right of first refusal to acquire a 53.9% interest in HS Orka from Alterra Power Corp, a subsidiary of Innergex Renewable Energy Inc. Jarðvarmi has also agreed to acquire a 12.7% interest in HS Orka from Fagfjárfestasjóðurinn ORK. The remaining 33.4% in HS Orka was already owned by Jarðvarmi. Following the transactions Ancala and Jarðvarmi will each own 50% of HS Orka.
The price for the acquisition of Alterra’s 53.9% interest was USD 299.9 million. The price for the acquisition of Fagfjárfestasjóðurinn ORK’s 12.7% interest was not disclosed. Ancala’s acquisition from Jarðvarmi has been agreed on the same terms.
Ancala and Jarðvarmi have further agreed to divest HS Orka’s 30% interest in the Blue Lagoon, Iceland’s leading tourist attraction, to Blávarmi. The sale transitions HS Orka into a pure play renewable energy platform.
