International law firm CMS has advised its long-standing client, AIM-quoted Smart Metering Systems Plc (“SMS”), on its latest equity placing. The transaction involved an accelerated bookbuild process, managed by Cenkos Securities plc, Investec Bank plc and RBC Capital Markets, to raise around £175m investment through a share placing.
SMS is a fully integrated energy infrastructure company with a market capitalisation of around £1bn, specialising in the ownership and management of meter assets, energy data, grid-scale batteries and other carbon reduction assets across the UK.
The net proceeds of the placing, together with SMS’ recently increased £420m debt facility, will be used to fund its contracted smart meter order pipeline and its planned grid-scale battery projects, as the company progresses its strategic goal of enabling the UK’s transition to a low carbon energy economy.
The placing represents the latest transaction CMS has acted on for SMS in a relationship which dates back prior to the company’s IPO in 2011. CMS supported its client through its IPO, a previous accelerated bookbuild placing in 2017 for £150m, and on a number of strategic acquisitions to support SMS’s ongoing strategic growth.
This latest placing is subject to customary approval by SMS’ shareholders at a general meeting expected to be held on 1 October 2021.
The CMS team was led by Glasgow-based client relationship and corporate partner Graeme Bruce supported by senior associate Kate Darracott (UK and US Securities) and associates Alastair McNaughton, Jordan Kerr and Amy Brown.
Commenting on the deal, Craig McGinn, General Counsel and Company Secretary of SMS, said: “We are delighted with the support we have had from Graeme and the CMS team on what marks another major milestone in the SMS journey. We look forward to working with them on future deals.”
Graeme Bruce at CMS commented: “As ever, it’s been great working with such a focused team at SMS. We’re delighted to provide our support and we wish them well in their impressive plans to assist in the UK’s transition to a low carbon energy economy.”
