15th Jul 2015 08:49
LONDON (Alliance News) - Clean Air Power Ltd on Wednesday said it is running the rule over expressions of interest it has received from potential suitors, following the strategic review it kicked off in June.
The review, led by KPMG, was aimed at identifying ways to secure the long-term financial stability of the company, Clean Air said. In response to this, a number of parties have expressed interest in acquiring all or part of the company.
Clean Air develops technology for heavy duty diesel engines to operate on a combination of natural gas and diesel.
Clean Air said it is currently in the process of examining these offers but said there is no certainty of any deal being done.
"As we explained in our announcement on June 23, the decision by our partner on the South East Asian MicroPilot programme to extend the first phase rather than proceed to the second and full production phase, as we had expected, has put pressure on the group's short-term cash flows; a position which has been exacerbated by falling oil prices impacting sales of our Genesis-EDGE products in the US and Russia," said John Pettitt, Clean Air's chief executive.
"KPMG have been extensive in their work to secure the long-term financial stability of the group, and we will continue to work with KPMG over the next few weeks to deliver the best solution for all stakeholders, recognising that the group's short-term financial position may act as a constraint on our ability to maximise the value of the group," he added.
Shares in Clean Air were down 1.8% to 1.35 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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