Schroders in talks to buy stake in green investor Greencoat

UK fund manager Schroders said on Thursday it was in advanced talks to buy a significant stake in renewables investment firm Greencoat Capital, the fund manager behind Dublin-listed Greencoat Renewables.

Schroders issued the statement after a media report that it was close to taking a 75 per cent stake for about £360 million (€423 million), with a potential option to buy the remainder of the firm.

The move comes as fund managers compete for a global wave of sustainability-focused investments.

Greencoat manages solar, wind and other renewables funds. Founded in 2009 by energy banking veteran Richard Nourse, it has over £6 billion of assets under management.

Irish Times view on climate change and extreme weather

---

Can technology reduce agricultural emissions without herd cuts?

---

Portugal to build Europe’s biggest lithium plant

---

Growing support for climate change action among voters, poll finds

---

Schroders said there was no certainty the talks would lead to an agreement, adding it was continuing to evaluate other potential acquisition opportunities to enhance its sustainability position.

Greencoat was reported to be in the early stages of speaking with potential advisers as far back as March, as it weighed strategic options. The business was expected to attract interest from fund managers looking to gain expertise in environmentally-friendly investments.

It is understood that there would be no immediate impact on the Irish-listed business, or Greencoat’s UK-listed fund from any sale of the parent group. Schroders already holds a 3 per cent stake in the Dublin-listed business.

In a statement to the Irish Stock Exchange, Greencoat Renewables said: "The board of Greencoat Renewables notes the announcement from Schroders regarding the potential acquisition of a stake in Greencoat Capital LLP, the investment manager to Greencoat Renewables.

“The board confirms that any such potential transaction would relate to Greencoat Capital LLP, not Greencoat Renewables, and is confident that, should any transaction proceed, it would not impact Greencoat Capital’s role as investment manager to Greencoat Renewables.”

Greencoat Capital set up Greencoat Renewables for a €270 million initial public offering in 2017, attracting the Ireland Strategic Investment Fund and AIB as key anchor investors. – Reuters