JLEN Environmental Assets (LSE:JLEN), the listed environmental infrastructure fund, has announced the sale of a 51% stake in a portfolio of six gas-to-grid anaerobic digestion (AD) facilities to Future Biogas for £68.1 million.
The transaction is valued in line with the company's June 2024 valuation and is expected to be completed following a customary condition precedent.
JLEN will retain a 49% interest in the AD Portfolio, which boasts a combined generating capacity of 38MW.
Future Biogas, a specialist developer, has been operating these assets since JLEN acquired them between 2017 and 2019.
The partial disposal is expected to align the interests of both companies and create opportunities for further asset enhancements and life extensions beyond the current Renewable Heat Incentive (RHI) subsidy.
JLEN Chair Ed Warner stated: "This deal is a great outcome for JLEN, enabling us to recycle capital within the portfolio while continuing to benefit from the future growth and income generated by this attractive AD Portfolio."
JLEN also announced a share repurchase programme to return up to £20 million to shareholders.
The buybacks will be funded from the company's resources.