Background
- Arjun Infrastructure Partners (AIP) objective was to source bilateral long term investment opportunities with strong ESG credentials
- Sustainable Bio Solutions Aabenraa K/S (SBSA) has developed a shovel ready, fully consented, gas-to-grid biogas project in Denmark
- Once completed, the plant will be up to 4 times the size of a typical biogas plant and will supply 41m Nm3 of methane into the national Danish gas grid. Completion is targeted for Q2 2022
- The project has received approval from the EU Commission-approved 2013 subsidy regime, which will support the project for 20 years, backed by the AAA-rated Danish Government
Process
- DC Advisory (DC) provided M&A advice to AIP throughout the investment process, including:
- Process strategy
- Business plan formulation and review
- Financial modelling and valuation
- Due diligence coordination
- Assisting in drafting of Investment Committee materials
- Advice on transaction documentation including SPA
Outcome
- DC was able to deliver a successful outcome for AIP on a complex process, including:
- A multi-round competitive auction process with a number of interim milestones to signing within a short timeframe
- A limited period to complete due diligence
- Complex negotiations around transaction and project documentation
- The transaction completed in November with Notice to Proceed issued to the EPC contractor
- DC delivered AIP's key objective by advising on the investment in this green asset, that contributes to the circular economy and is poised to assist in the decarbonisation agenda
