19th Oct 2015 12:16
LONDON (Alliance News) - India-focused clean energy company Greenko Group PLC on Monday said it has agreed a deal to sell its Greeko Mauritius trading business to a subsidiary of Singapore state investment company GIC for GBP162.8 million.
Greenko said it will sell the business to Greenko Energy Holdings, a newly-formed subsidiary of Cambourne, which is an affiliate of GIC. Following the sale of the assets, which are Greenko's only trading businesses, comprising its holdings in clean energy projects in India, it will change its investing policy and will start the process of winding up the company.
As a result of this, the company said it will seek to return around 100 pence per share to its shareholders, with a planned initial capital return from the sale of 98 pence per share.
"I am pleased to be able to present the proposed disposal to shareholders for their approval. The independent directors believe that the disposal is in the best interests of shareholders and through the realisation of certain cash proceeds will facilitate a return of capital," said Keith Henry, Greenko's chairman.
Shares in Greenko were up 17% following the news to 93.1 pence, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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