The future of LM Wind Power, one of the country’s leading wind turbine manufacturers, is the subject of discussion as its investment fund owner Doughty Hanson has decided to realise its portfolio, Berlingske Business reports.
Stephen Marquardt, the managing partner of Doughty Hanson, told Berlingske in the spring that the fund was concentrating on an exit strategy.
“Over the past three decades we have consistently focused on taking all necessary steps to ensure strong exits for investments in our portfolios, and we will now be even more focused than ever on achieving that goal,” he said.
The American company TPI Composites, which manufactures wings for the wind industry, has been touted as a potential buyer. TPI has overcome economic difficulties a few years ago to land several lucrative contracts recently, including a co-operation with Vestas in China.
Listing unlikely
LM Wind Power has attempted stock market listings in the past, including one a year after Doughty Hanson’s acquisition in 2001.
Frederik Aakaard, a partner at the investment consultancy Audon, highlights that the company’s bottom line being in the red makes it unlikely that a listing will be possible this time around.
“Even in good cases, a listing is difficult. Investors focus a lot on price/earning parameters, so it’s almost surreal to imagine that a company with losses could be successfully listed,” he said.
