Partners鈥� latest core infrastructure fund has bought a 50% stake in Iceland鈥檚 largest private electricity generator from a consortium of 14 Icelandic pension funds.
Ancala Infrastructure Fund II has agreed to buy the interest in HS Orka from Jar冒varmi for an undisclosed sum.
The transaction follows Jar冒varmi鈥檚 exercise of its right of first refusal to acquire a 53.9% interest in HS Orka from Alterra Power, a subsidiary of Innergex Renewable Energy, for $299.9m (鈧�269m).
Jar冒varmi has also agreed to acquire a 12.7% interest in HS Orka from Fagfj谩rfestasj贸冒urinn ORK for an undisclosed amount.
The remaining 33.4% in HS Orka was already owned by Jar冒varmi.
Following the transactions, Ancala and Jar冒varmi will each own 50% of HS Orka.
Ancala said it has agreed with Jar冒varmi to divest HS Orka鈥檚 30% interest in the Blue Lagoon to Bl谩varmi. The sale transitions HS Orka into a pure play renewable energy platform, it said.
HS Orka has been producing renewable energy for 40 years and operates two geothermal powerplants, Svartsengi and Reykjanes, with a combined installed capacity of 174MW.
The company is also currently constructing a 10 MW hydro powerplant at Bl谩sk贸gabygg冒 and is at an advanced stage of development for additional geothermal and hydro capacity.
Lee Mellor, partner, Ancala Partners, said: 鈥淎ncala and Jar冒varmi share a common investment philosophy focused on supporting management, providing further capital for growth and adopting a long-term outlook.
鈥淗S Orka represents a compelling growth platform in Iceland鈥檚 exciting renewable energy sector. We look forward to working with Jar冒varmi and HS Orka鈥檚 management team.鈥�
David Rudolfsson, chairman of the board of Jardvarmi, said: 鈥淎ncala鈥檚 renewable energy expertise, joint view on HS Orka鈥檚 potential combined with our shared long-term investment outlook make us aligned partners.鈥�
