ReFuels has announced the terms of the transaction with Foresight Group which will simplify the ReFuels operating structure and open up opportunities for the company’s future station roll-out. Whilst the mechanics of the transaction itself are complicated, the new structure will give ReFuels an integrated bio-CNG infrastructure platform from which to advance their next stage of growth. The business is poised to accelerate growth in the next three to five years in order to facilitate an exit point for Foresight. The higher the value of CNG Fuels on exit, the more value that will accrue to ReFuels based on a ratchet system for returns. We have updated our forecasts to reflect the transaction progressing through a vote and detail the terms and nature of the transaction below. Our central case valuation moves to NOK 28.
