11th Apr 2016 08:49
LONDON (Alliance News) - Atlantis Resources Ltd on Monday said it has agreed to sell a minority stake in the subsidiary that houses its tidal development projects in Scotland in a deal that values that Scottish arm at GBP100.0 million.
Atlantis has struck a deal to sell a 2% stake in its subsidiary, Tidal Power Scotland Ltd, to DEME Concessions NV for a cash payment of GBP2.0 million.
DEME Concessions is part of the Belgian-based DEME Group, a company focused on dredging, environmental and marine engineering that generated EUR2.35 billion in revenue during 2015.
Atlantis shares were trading up 7.8% to 59.80 pence per share on Monday morning, giving it a market capitalisation of only GBP63.4 million - considerably less than the implied valuation of its 92%-owned Scottish arm based on the deal Monday.
"We are excited to welcome DEME as a strategic investor into the Tidal Power Scotland portfolio. As a respected global leader in offshore renewable energy installation, DEME brings a wealth of expertise and we are particularly excited to work closely with them to help deliver our Scottish project pipeline," said Tim Cornelius, chief executive of Atlantis.
The deal is subject to certain conditions, including the procurement of third-party consents and an agreement with DEME regarding the commercial arrangements related to the offshore construction works, which will be attained during the "coming weeks", Atlantis said.
DEME also has acquired the right to contribute equity funding to the Sound of Islay project under the deal struck Monday, as the pair look to develop a partnership for offshore construction works to build-out Atlantis' Scottish portfolio.
Tidal Power Scotland struck a deal back in December to acquire the 10.0 megawatt Sound of Islay project and the 100.0 megawatt Ness of Duncansby projects from ScottishPower Renewables (UK) Ltd. ScottishPower Renewables acquired a 6% stake in Tidal Power Scotland through that deal, meaning Atlantis will hold a 92% stake in Tidal Power Scotland following the deal with DEME on Monday.
Outside of Scotland, Atlantis is developing projects or supplying equipment to projects located in Canada, China, India and Australia.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
ARL.L