A overseas group led by German banking giant Deutsche Bank is reportedly poised to buy the Uskmouth power station in south Wales for around GBP120 million.
Reports suggest that the partnership, made up by Deutsche Bank, Strategic Value Partners and Trafalgar Asset Managers, is in advanced negotiations, with a cash offer to buy full ownership of the coal-fired power facility on the table.
As a result of the sale, current owners The Rutland Fund will see a four fold return on its investment in the power plant, equivalent to around GBP95 million once relevant costs have been taken into account.
The impressive potential profit reflects the recent resurgence in value of coal-fired power stations at a time when wholesale gas prices have surged and nuclear power continues to divide opinion.
Uskmouth is a 360MW coal-fired power station with three independent coal-fired generation units and a 1,250MW connection to the National Grid.