Disposal of Stake in Six Anaerobic Digestion Fac.

Foresight Environmental Infrastruct

26 October 2026

 

26 October 2026

FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED

(“FGEN” or the “Company”)

Disposal of Stake in Six Anaerobic Digestion Facilities

• Following the initial sale of a majority stake in 2024, the Company has sold its remaining 49% interest in six anaerobic digestion facilities (the “AD Portfolio”) to Future Biogas (the “Disposal”) for a total consideration of £104.0 million.
• The consideration represents:

-      a 7.5% premium to the valuation as at 30 June 2026, being an uplift of £7.2 million equivalent to 1.2 pence per share;

-      a 38% increase in the valuation¹ at the time of the initial sell-down in 2024; and

-      an internal rate of return (“IRR”) of 12.9% and a multiple on invested capital (“MOIC”) of 1.9x.

• The proceeds will be used to substantially reduce drawings under the Company’s Revolving Credit Facility (“RCF”), strengthening the balance sheet and creating significant capacity to fund existing commitments and recycle capital into new investments within the Company’s disciplined capital allocation framework.

The Disposal

FGEN, a leading investor in private environmental infrastructure assets across the UK and mainland Europe, is pleased to announce that it has signed an agreement to sell its remaining 49% interest in a portfolio of six gas-to-grid anaerobic digestion facilities to Future Biogas for a total consideration of £104.0 million. The Disposal follows the initial sale of a 51% stake to Future Biogas in August 2024.

The consideration represents a 7.5% premium to the 30 June 2026 valuation and a 38% increase in the valuation¹ of FGEN’s remaining interest since the initial 51% sale, crystallising the value created through various initiatives during FGEN’s and Future Biogas’ ownership. The Disposal results in an IRR of 12.9% from investment inception and a MOIC of 1.9x.

Capital allocation

The net proceeds of the Disposal will be applied to reduce drawings under the RCF, strengthening the balance sheet and increasing financial flexibility. This will create capacity to fund existing commitments and selectively recycle capital into core environmental infrastructure, across renewable energy generation, other energy infrastructure and sustainable resource management.

The Investment Manager is actively engaged in a number of acquisition opportunities offering attractive risk-adjusted returns and the potential for long-term income and growth, in line with the Company’s June 2025 strategic update and 2026 Capital Markets Day. Any new investment will remain subject to FGEN’s disciplined capital allocation framework and consideration of the relative returns available from alternative uses of capital.

AD Portfolio history

FGEN acquired the AD Portfolio between 2017 and 2019 for £100.4 million, with Future Biogas as the developer, operator and strategic partner for the assets. In August 2024, FGEN sold a 51% interest in the AD Portfolio to Future Biogas for £68.1 million, with a view to unlocking further value from the AD Portfolio. Since then, this ownership structure has enabled both parties to invest in system upgrades, operational optimisation and life-extension initiatives beyond the expiry of Renewable Heat Incentive support, including progressing carbon capture opportunities.

The Disposal crystallises the resulting valuation uplift in line with FGEN's strategy of delivering long-term shareholder value through active portfolio management, operational optimisation, disciplined capital allocation and exercising strategic flexibility regarding disposals and capital recycling.

FGEN owns five further anaerobic digestion facilities with an aggregate value of £76.9 million which are not part of the agreement.

Dividend – FY27 and FY28

FGEN reaffirms its FY27 dividend target of 8.04 pence per share, fully covered by portfolio cash flows, with dividend cover expected to remain within the 1.2x–1.3x range for the current financial year. The Company expects a similar level of dividend cover in FY28, before taking into account any potential reinvestment of the Disposal proceeds, supporting its overriding objective of delivering a sustainable, progressive dividend.

Stephanie Coxon, Chair of FGEN, commented:

“This transaction represents a positive outcome for FGEN and our shareholders. The 7.5% premium achieved to the assets’ June carrying value provides clear, tangible evidence of the value embedded in FGEN's portfolio and demonstrates the strength of our active portfolio management approach. The proceeds will strengthen the Company's balance sheet and increase the flexibility to allocate capital to those opportunities offering the most attractive prospective returns.”

Charlie Wright, Investment Manager for FGEN, said:

"We have worked closely with Future Biogas over a number of years, first as the operator and, since August 2024, as co-owner of the AD Portfolio. During FGEN's ownership, we have actively supported the assets' operational performance and progressed initiatives intended to enhance their long-term value. The Disposal represents the natural next step in the evolution of the portfolio and enables FGEN to realise that value while increasing the Company's financial flexibility. The proceeds will support FGEN's disciplined capital allocation approach, providing the ability to reduce leverage, fund existing commitments and selectively deploy capital into opportunities that we believe can deliver attractive long-term returns for shareholders."

1.       Including £10.1 million of additional capital invested since the sell-down.

This announcement contains inside information for the purposes of UK MAR. Upon publication via a Regulatory Information Service, this information is considered to be in the public domain.

Contacts

For further information, please visit www.fgen.com or contact:

Foresight Group Edward Mountney Charlie Wright Wilna de Villiers	[phone] [e-mail]
Winterflood, a division of Marex Financial (Joint Broker) Neil Langford	[phone]
Investec Bank plc (Joint Broker)	[phone]
David Yovichic
FTI Consulting Ambrose Fullalove / Zac Lewis	[phone] [e-mail]
Apex Fund and Corporate Services (Guernsey) Limited Michael Mabaso-Mlilo	[phone] [e-mail]

About FGEN

FGEN invests in environmental infrastructure to deliver stable returns, long-term predictable income and opportunities for growth, whilst driving decarbonisation and sustainability.

Investing across renewable generation, other energy infrastructure and sustainable resource management, it targets projects and businesses with an emphasis on long-term stable cash flows, secured revenues, inflation linkage and the delivery of essential services. FGEN's aim is to provide investors with a sustainable, progressive dividend per share, paid quarterly, alongside the potential for capital growth.

The target dividend for the year to 31 March 2027 is 8.04 pence per share².

FGEN is an Article 9 fund under the EU Sustainable Finance Disclosure Regulation and has a transparent and award-winning approach to ESG.

Further details can be found on FGEN's website www.fgen.com and its LinkedIn page.

(2) These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.

 

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