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Eenergy mulls disposal of unit as Luceco invests around GBP2 million

8th Nov 2023 11:04

(Alliance News) - eEnergy Group PLC on Wednesday said that it was considering to dispose its energy management division, while Luceco is subscribing in a portion of its shares via strategic investment.

eEnergy is a London-based net-zero energy services provider, while Luceco is a London-based lighting manufacturer and distributor.

eEnergy said Luceco will invest GBP1.8 million by subscribing for 35 million new eEnergy shares at 5 pence each.

eEnergy shares jumped 44% to 5.78p each on Wednesday morning in London, while Luceco shares were 2.8% higher at 108.80p each.

eEnergy said it received several unsolicited approaches regarding a potential sale of its energy management division, with a number of indicative cash offers valuing the unit at more than GBP30 million. The board is in a period of exclusivity now with one of the interested partners.

eEnergy and Luceco said: "Luceco has achieved strong growth from the drive towards energy efficiency and decarbonisation through its LED lighting and electric vehicle charger categories. The continuing trend towards clean energy technologies offers an opportunity for Luceco to expand its offering into developing categories. eEnergy is an important customer of Luceco's LED lighting division and is well positioned to become an increasingly important channel for clean energy categories in the non-residential sector."

eEnergy Chief Executive Officer Harvey Sinclair said: "I am delighted to welcome Luceco as a new shareholder to the Group. The strategic investment cements our already longstanding relationship and demonstrates our combined confidence in the growth opportunities for our markets. I look forward to working with John and his team on this new partnership."

By Tom Budszus, Alliance News reporter

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