JERSEY: redT energy plc, the energy storage solutions company, has completed the divestment of its legacy Camco business with the sale of its wholly owned subsidiary Camco International Group Inc. (CIG).
This business provides project development and asset management services to biogas projects in the USA. Over the last three financial years this business has contributed £0.2 million per annum to group results from operating activities, a notice issued to London Stock Exchange (LSE) said.
Camco International Group Inc. (CIG) has been sold to an entity controlled by Jim Wiest, Managing Director of CIG. Cash receipts from the sale consist of a distribution of US$1.0 million to redT funded by a loan into CIG from a third party plus $0.5 million of further consideration payable in two equal installments, the first due 30 April 2019 and the balance due 31 July 2019.
It was agreed that working capital balances, including cash of $0.5 million, would remain in CIG as part of the sale resulting in a net cash benefit to redT as a result of the transaction of $1 million. This will be used to fund the redT business during the Strategic Review announced on 14 March 2019. At the time of sale, CIG had net liabilities of US$0.3 million, including the US$1.0 million loan liability.
The divestment of US business activities constitutes a related party transaction under the AIM Rules. The Directors consider, having consulted with Investec, acting in its capacity as the Company’s Nominated Adviser, that the terms of the sale are fair and reasonable insofar as the Company’s shareholders are concerned.[the_ad id=”32940″]