Infinis Energy plc Disposal of hydro business (3844A)
December 19 2014 - 1:25PM
UK Regulatory
TIDMINFI
RNS Number : 3844A
Infinis Energy plc
19 December 2014
Infinis Energy plc (Symbol: INFI)
Disposal of hydro business for GBP20.5m
Infinis Energy plc ("Infinis" or the "Company") has reached
agreement to dispose of its hydro portfolio for cash consideration
of GBP20.5m. Infinis has entered into agreements to sell all of its
Welsh hydro sites, totalling 14MW, to Dwr Cymru Welsh Water ("Welsh
Water") and the remaining hydro sites, totalling 3MW, to H20 Power
Limited.
As previously stated, Infinis has considered the hydro business
as non-core given its size and limited investment has been made in
developing further the hydro portfolio. Today's announcement
follows long-running discussions between Infinis and its
counterparties to co-ordinate arrangements for the disposal of the
hydro portfolio as a whole. The Company will use the proceeds of
the hydro sale to further develop the growth of its onshore wind
portfolio in line with its existing strategy.
Eric Machiels, Chief Executive of Infinis, said:
"We are pleased to announce today that we have agreed the sale
of our non-core hydro business. This will enable Infinis to
streamline its operational portfolio by focusing on its core
landfill gas and onshore wind businesses. It also allows us to
recycle capital to continue to develop our onshore wind portfolio
which remains central to our growth plans."
The disposal of the Welsh hydro operations is conditional upon
receiving approval from Welsh Water's lenders. Majority lender
consent is required and, subject to such consent being obtained, we
would anticipate completing this transaction in or around February
2015. The disposal of the remaining sites is conditional upon
completion of the Welsh Water transaction. The aggregate purchase
price may be adjusted downwards by up to cGBP2.8m and relevant
sites excluded if certain approvals are not obtained within 12
months of completion.
The hydro business has an aggregate installed capacity of 17MW
and in FY14 contributed GBP1.6m to profit before taxation and
GBP2.3m to divisional EBITDA (or approximately 1.5% of group EBITDA
of GBP148.4m). The value of the gross assets comprising the hydro
portfolio as at 31 March 2014 was GBP16.4m. The hydro sites operate
both run of river and reservoir technologies.
Enquiries:
Brunswick Group Justine McIlroy / David Litterick
+44 20 7404 5959
Infinis@brunswickgroup.com
Note to editors:
Statements made in this announcement may include forward-looking
statements. Any forward-looking statements reflect the Company's
current expectations concerning future events and actual results
may differ materially from current expectations or historical
results.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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