SCOTTISH company Smart Metering Systems has conditionally raised £150 million from institutional investors through a share placing, as it attempts to increase its market share “as part of a land-grab opportunity”.
SMS said the proceeds of the share placing would, together with agreement with its syndicate of banks to refinance a £280m credit facility, give it the “financial and operational flexibility to fully fund the installation of approximately 2.5 million meters”.
Willie MacDiarmid, chairman of SMS, said: “The roll-out of smart meters to the domestic energy market represents a significant growth opportunity for SMS, enabling the UK’s transition to a low carbon energy economy.”
SMS, which has framework agreements in place for the installation, ownership and management of domestic smart meters with nine independent energy suppliers, said: “The company’s key strategic objective in the domestic smart-metering roll-out is to maximise its market share as part of a ‘land-grab’ opportunity for this growing UK infrastructure asset class.”
The company added that it would have flexibility to fund up to about four million meters in total “through a further debt financing at an appropriate point”.
The share placing, at 690p-a-share, is conditional on approval at a general meeting scheduled for December 20.
SMS shares yesterday dipped by 8p to 719p.
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