20th Jun 2023 09:42
(Alliance News) - Esken Ltd on Tuesday said it has agreed to sell its investment in Mersey Bioenergy Holdings Ltd for GBP9 million.
Shares in the Widnes, England-based infrastructure, aviation and energy company were up 8.0% to 3.84 pence each in London on Tuesday morning.
It said that its wholly owned subsidiary Esken Green Energy Ltd has sold its investment in Mersey Bioenergy to UK Waste Resources and Energy Investments LP, a member of the Bioenergy Infrastructure Group.
Mersey Bioenergy owns and operates a combined heat and power plant in Widnes. Esken's investment in Mersey Bioenergy comprises a 39.6% shareholding and GBP7.3 million of unsecured 13.5% loan notes with a ten-year term ending in November 2024.
Esken said the disposal is part of the company's ongoing strategy to dispose of non-core assets. The company's investment in Mersey Bioenergy did not contribute to either profit or loss for Esken in the year ended 28 February 2022.
Esken added that the disposal will not impact the Mersey Bioenergy Fuel Supply Agreement with Esken Renewables, which expires July 2035.
The consideration of GBP9 million will be paid in cash on completion, and the cash will be used for repayment of debt and working capital purposes.
Completion is expected to take place before the end of August.
By Sophie Rose, Alliance News reporter
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