Cathal Friel Outlines Plans to Float ‘EGT’ to Fund the Green Transition Portfolio

Cathal Friel
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The listing is reported to be eyeing a modest fundraising of approximately £10 million next month.
Cathal Friel is moving forward with plans for a fifth stock market listing, having announced yesterday his formal intention to list his new European Green Transition (EGT) firm in London. The objective is to use the stock market to build up a portfolio of green economy assets in Europe.
Mr Friel, a former stockbroker, is gaining a reputation as a rare Irish enthusiast for raising equity in the public markets for relatively early-stage enterprises, particularly after Amryt Pharma’s massive €1.38 billion sale last year.

Michael Nolan, an oil businessman who made a fortune selling the stock market-listed exploration company Cove Energy to Shell in 2012, is also behind the proposals.

The EGT offering is scheduled for April 3 and is projected to raise approximately £10 million (€12 million) at a valuation of around the same. The goal is to grow the business and eventually leverage the hoped-for rising stock price to make stock acquisitions. The goal is to build over time a portfolio of green economy assets in Europe. The business already has certain assets, including a rare earth minerals exploration licence in Sweden known as the Olserum Rare Earth Element (REE) project.

REEs are metallic elements that are employed in various technologies, such as electric automobiles and wind turbines. EGT believes Olserum has the potential to be Europe’s first commercial-stage rare earth mine. EGT also owns mining rights in the German state of Saxony and claims to have uncovered a pipeline of further potential assets.

Initial intentions to focus on metals and minerals required to satisfy Europe‘s objective of transitioning to greener energy suppliers and usage have been expanded to potentially include a larger “green energy” portfolio. Mr Friel mentioned the possibility of distressed energy assets, among others, being shaken out by investors who took on debt during the period of zero interest rates as a source of transaction activity.

“We want to be nimble enough to take advantage of that,” he said.

In addition to Mr Friel and Mr Nolan, who owns an 11.6 percent stake in the company, the leadership team includes CEO Aiden Lavelle, a chartered geologist with 16 years of industry experience, and CFO Jack Kelly, a chartered accountant with extensive M&A experience, including at Mr Friel’s Raglan Capital.

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