The group announced last November that it would purchase the Green Highland Renewables (GHS) portfolio of assets for £124.7mln.
On Tuesday, SIMEC Atlantis said after assessing its financing options, it has determined that an alternative transaction structure in relation to GHR would be in the interests of shareholders and therefore will no longer pursue the acquisition.
SIMEC Atlantis said it is in talks with SIMEC Energy in relation to an alternative transaction to allow the company to “deliver on its mandate of creating shareholder value through the development of high value sustainable power generation projects throughout the UK and abroad”.
“There can be no guarantee that any transaction in relation to GHR will reach a conclusion,” it said.
In March SIMEC Atlantis had raised £5mln in a share placing to pay for part of the acquisition of GHR.
Under the terms of the deal, the company was to pay £29.7mln upfront, comprising cash of £14.85mln for GHR’s equity and some existing debt, with a further £95mln secured by long-term project finance.
GHR, which is focused on hydro-electricity generation, has a portfolio of 15 mini-projects with a total operational capacity of 20 megawatts (MW), as well as one project under construction and one project in development that can add a further 8MW.