Trading Emissions Gets Unsolicited Bid For PE Portfolio

UK-based clean energy project developer Trading Emissions has received an unsolicited bid to buy its private equity portfolio, Reuters reported. The company did not reveal the name of the suitor, but said it has started a formal sale process for the portfolio and would seek other offers, Reuters said. Trading Emissions’ private equity portfolio was valued in June at 116 million pounds ($180.4 million). It includes investments in Asia Biogas Singapore and Sun Biofuels.

(Reuters) Clean energy project developer Trading Emissions Plc. said on Tuesday it has received an unsolicited bid from an undisclosed source to buy its private equity portfolio.

The UK-based company invests in U.N.-backed carbon credits and holds equity stakes in renewable energy projects.

It has said previously that it wanted to sell assets in its portfolio in the short and medium term. “The Board therefore believes it should give due consideration to this proposal,” the firm said in a statement. Shares in Trading Emissions were 5.68 percent higher at 93.81 at 1139 GMT.

The company has started a formal sale process of the portfolio and would seek offers from other interested parties.

“This is potentially good news, yet how good depends on the price,” said Mirabaud Capital analyst Gus Hochschild.

For the year ending June 2010, the private equity portfolio was valued in the management’s net asset value at 116 million pounds ($180.4 million) and 45.2 pence per share, Hochschild said.

“Given the recent share buy-back, the same valuation of the corporate book amounts to 46.4 pence per share and we hope that management is able to secure a price in excess of this sum,” he added.

The company has several private equity investments, including Asia Biogas Singapore, Carbon Capital Markets and Elements Markets and Sun Biofuels.

In October, Trading Emissions trimmed its U.N. carbon offset portfolio, due to climate policy uncertainty and U.N. project registration delays.

(Reporting by Nina Chestney)