Esken Limited Disposal (2313D)
June 20 2023 - 2:00AM
UK Regulatory
TIDMESKN
RNS Number : 2313D
Esken Limited
20 June 2023
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018.
20 June 2023
ESKEN LIMITED
("Esken", the "Group" or the "Company")
Sale of investment in Mersey Bioenergy
Esken, the aviation and renewable energy group, announces that
its wholly owned subsidiary, Esken Green Energy Limited, has today
agreed the sale of its investment in Mersey Bioenergy Holdings
Limited and its wholly owned subsidiary (together "Mersey
Bioenergy") to UK Waste Resources and Energy Investments L.P., a
member of the Bioenergy Infrastructure Group, for a total cash
consideration of GBP9m (the "Disposal").
Mersey Bioenergy owns and operates a combined heat and power
plant in Widnes and the Disposal is part of Esken's ongoing
strategy to dispose of non-core assets.
Esken's investment in Mersey Bioenergy comprised a 39.6%
shareholding and GBP7.3m of unsecured 13.5% loan notes with a
ten-year term ending in November 2024. The shareholding and loan
notes had been fully written down by Esken, with a GBPnil net book
value as at 31 August 2022, and the investment in Mersey Bioenergy
did not contribute to either profit or loss for the Group in the
year ended 28 February 2022.
The consideration of GBP9m will be paid in cash on completion,
and the cash will be used for repayment of debt and working capital
purposes. Completion will take place once certain conditions have
been satisfied, including conditions which relate to the
refinancing of Mersey Bioenergy by Bioenergy Infrastructure Group
and the capitalisation of all existing loan notes issued by Mersey
Bioenergy Holdings Limited. Completion is expected to take place
before the end of August 2023.
This Disposal does not impact the Mersey Bioenergy Fuel Supply
Agreement with Esken Renewables, which expires July 2035.
Additional information
The Disposal constitutes a Class 2 transaction for Esken for the
purposes of the Financial Conduct Authority's Listing Rules.
The current shareholders in Mersey Bioenergy Holdings Limited
are: UK Waste Resources and Energy Investments L.P. (49.9%), Esken
Green Energy Limited (39.6%) and Burmeister & Wain Scandinavian
Contractor A/S (10.5%).
Enquiries:
Esken Limited C/o Tulchan Communications
Charlie Geller, Group Communications Director
Tulchan Communications
Olivia Peters / Lisa Jarrett-Kerr
020 7353 4200
esken@tulchangroup.com
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END
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