FGEN’s £104m anaerobic digestion sale strengthens balance sheet and fuels investment plans

Foresight Environmental Infrastructure (LSE:FGEN) investment manager Ed Mountney spoke with Proactive's Stephen Gunnion about the company’s £104 million sale of its remaining 49% stake in six anaerobic digestion plants, debt reduction and plans to reinvest in environmental infrastructure. Mountney explained that the deal with Future Biogas completes a two-stage disposal, following the sale of an initial 51% stake in 2024. The latest transaction secured a 7.5% premium to the assets’ June 2026 valuation, reflecting value created through operational improvements, system upgrades and plant life extensions. He said the proceeds would substantially reduce borrowings under FGEN’s revolving credit facility, strengthening the balance sheet and creating greater financial flexibility to fund existing commitments and pursue new investments offering attractive risk-adjusted returns. The interview also explored opportunities across FGEN’s remaining five anaerobic digestion plants, including operational improvements and portfolio diversification. Mountney reaffirmed the company’s 8.04p dividend target for the financial year ending March 2027, with expected cover of 1.2 to 1.3 times. A similar level is anticipated in FY2028, before any impact from reinvesting the sale proceeds. Watch the full interview for more on FGEN’s capital allocation strategy, dividend outlook and growth plans. Visit the Proactive YouTube channel for more videos, give this video a like, subscribe to the channel and enable notifications for future content. Read Proactive's Editorial Policy here: https://www.proactiveinvestors.co.uk/pages/editorialPolicy #ForesightEnvironmentalInfrastructure #EdMountney #EnvironmentalInfrastructure #InfrastructureInvestment #AnaerobicDigestion #RenewableEnergy #Biogas #FutureBiogas #AssetSale #CapitalRecycling #DebtReduction #DividendIncome #InvestmentTrusts #SustainableInfrastructure #CarbonCapture #InvestorNews #ProactiveInvestors