ESB concludes NIE acquisition
Joint Statement from ESB and Viridian
December 21, 2010
ESB concludes NIE acquisition
ESB has today (December 21) successfully concluded the acquisition of NIE, the Northern
Ireland electricity networks business, from the Arcapita Bank-owned Viridian Group for c.
£1.2 billion. ESB entered into a conditional share purchase agreement to acquire NIE on 6
July 2010.
As part of the acquisition, ESB has also acquired certain associated companies of NIE,
including NIE Powerteam Limited and Powerteam Electrical Services (UK) Limited,
which provide electrical construction and maintenance services. In total, the NIE Group
employs approximately 1,300 staff. NIE’s Regulated Asset Base at 31 March 2010 was
£1,007 million.
NIE will continue to operate as a stand-alone business under the NIE brand and identity.
Arcapita will continue to own the Viridian Group, which it acquired in 2006. Its principal
businesses following completion of the transaction will be Viridian Power & Energy
which operates gas-fired and renewable generation and supplies electricity and gas on an
all-island basis, the Power Procurement business and NIE Energy Supply. These
businesses are not included in the disposal and continue to employ approximately 340
people.
ESB Chief Executive, Padraig McManus, said: “We are delighted with the acquisition of
NIE, an efficient and successful company. ESB is committed to making the capital
investment required to match future growth in the economy and to meet the Northern
Ireland government’s targets in relation to the development of renewable energy”.
Viridian Group Chairman, Patrick Haren, said: “Under Viridian Group's
ownership, NIE has strengthened its network capacity and improved significantly its
service delivery to customers. Under its new owners, it will meet the challenge of grid
development and delivering increasing volumes of renewable energy to customers. We
wish our colleagues at NIE very well for the future. Viridian Group, under Arcapita's
continuing ownership, will now be focused on our very significant generation and supply
businesses.”
Ends
Background
NIE owns the regulated electricity transmission and distribution network in Northern
Ireland and is responsible for the planning, development, construction and maintenance of
the entire network, as well as the operation of the distribution network. The transmission
and distribution network in Northern Ireland comprises approximately 2,100km of the
high voltage transmission system and approximately 42,900km of the low voltage
distribution system. NIE Powerteam Limited provides construction and maintenance
services exclusively to the transmission and distribution network. Powerteam Electrical
Services provides similar services to third party electricity distribution businesses and to
other industrial customers.
Founded in 1927, ESB is one of Ireland’s leading companies with an annual revenue of
more than €3 billion and approximately 6,800 employees. A vertically integrated utility
with generation, networks and supply businesses, as well as a highly successful
international business, ESB’s annual capital investment is in the region of €1.1 billion.
Over the past decade, ESB has undertaken a €6 billion investment programme to
successfully refurbish the Republic of Ireland’s electricity infrastructure. It has now
embarked on the implementation of a €22 billion investment strategy, which will make the
company carbon-neutral by 2035; half of this spend is directed at developing renewable
energy generation and smart networks. Further details on ESB can be found at
www.esb.ie.
Viridian Power & Energy is an integrated generation and supply business comprising
modern gas-fired generation at Huntstown in the Republic of Ireland, Energia, a leading
supplier of electricity and gas to business customers across the island of Ireland and a
growing windfarm portfolio. NIE Energy Supply is a regulated supplier to c.800,000
residential and business customers in Northern Ireland. Power Procurement, also a
regulated business, administers c.1,000MW of generation capacity under contract in
Northern Ireland.
Headquartered in Bahrain with offices in Atlanta, London and Singapore, Arcapita’s four
principal lines of business are Infrastructure, Private Equity, Real Estate, and Venture
Capital. To date, the Bank has completed 71 transactions with a total value of more than
$28.4 billion and has an equity capital base of $1.3 billion, and $7.9 billion in funds under
management. Arcapita’s mission is to provide innovative and distinctive investment
opportunities that generate superior risk-adjusted returns while adhering to Islamic
principles. Further details on Arcapita can be found at www.arcapita.com.
Ends
For further Information, please contact:
ESB
Brian Montayne 00 353 87 8211715
Arcapita
Tim Doyne +973-17-218-333
Viridian
Alwyn Whitford: +44 28 90689483
Author: Viridian Administrator - 21/12/2010 15:30:14
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