14th Aug 2015 07:51
LONDON (Alliance News) - Greenko Group PLC Friday said its 2015 results are likely to be lower than market expectations, as it signed non-binding heads of terms to sell all of its stake in Greenko Mauritius for around GBP162.8 million to an affiliate of the Government of Singapore Investment Corporation Pte Ltd.
The Indian clean energy products company said that whilst it has seen power generation from its portfolio increase during the first half of 2015, the good performance of the operating portfolio has not converted into strong financial results due to a late and slower start to the current monsoon season.
The sale of its stake in Greenko Mauritius would mean the company has disposed of its trading activities and assets, comprising the development, ownership and operation of clean energy projects in India, and would release it from all associated financial liabilities including debt and associated minority interests.
Talks on the sale are at an advanced stage, Greenko said, but are subject to the company entering a legally binding sale and purchase agreement.
If the sale goes ahead Greenko plans to distribute the proceeds. It intends to provide a further announcement detailing its reasons for the proposed sale and the terms of the deal, as well as how much it plans to return to shareholders, after a sale and purchase agreement has been inked.
"Overall, the backdrop for clean energy in India remains extremely positive, with strong government support, and is attracting significant inward investment," the company said in a statement.
Shares in Greenko are trading down 2.8% at 80.23 pence Friday morning, having originally risen on the news.
By Hana Stewart-Smith; [email protected]; @hanassallnews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
GKO.L