The world's largest producer of industrial wood pellets US-based Enviva Holdings, LP has announced that two of its wholly-owned subsidiaries sold 1 265,453 common units representing limited partner interests in Enviva Partners, LP to accounts managed by ValueAct Spring Fund, HITE Hedge Asset Management LLC, and Kayne Anderson Capital Advisors, L.P.
According to a statement, the transaction was priced on May 4 and settled on May 9, 2018. The common units were sold pursuant to an effective registration statement on file with the Securities and Exchange Commission (SEC).
This transaction demonstrates the strong investor support for Enviva Partners and the growing interest in renewable energy and infrastructure investments. Proceeds from the sales will be recycled to help fund the capital requirements of our development joint ventures to construct the Hamlet plant and increase the capacity of the recently acquired Greenwood plant. We expect one plant to be made available as a drop-down transaction to Enviva Partners, LP in 2019 and the other in 2020 said John Keppler, Chairman and Chief Executive Officer of Enviva
Though the total value of the transactions has not been stated, given that Enviva Partners’ – a publicly-traded master limited partnership – common units were traded on May 4 at an average price of US$28.03 per unit, the transactions could be worth some US$35.4 million.
According to Bloomberg, San Fransico based ValueAct Capital, an “activist investor” has built a US$20 million stake for its new US$250 million “environmentally and socially focused” ValueAct Spring Fund suggesting that it acquired the largest stake of the three accounts.
Enviva’s contribution to growing forest inventory by supporting the responsibly-sourced forest products market is an example of the enabling force companies can serve in the pursuit of a healthier planet and healthier communities, said Jeff Ubben, Chief Executive Officer and founder of ValueAct Capital.
About Enviva Holdings, LP
Enviva Holdings, LP is the world’s largest producer of industrial wood pellets and the company Through its subsidiaries, Enviva Holdings, LP owns and operates wood pellet processing plants and deep-water export terminals in the Southeastern United States (US). Enviva Holdings, LP conducts its activities primarily through two entities: Enviva Partners, LP, a publicly-traded master limited partnership (NYSE: EVA), and Enviva Development Holdings, LLC, a wholly owned private company.