8th Oct 2018 10:11
LONDON (Alliance News) - Property and industrial services firm Hargreaves Services PLC said Monday it has agreed to sell its renewable energy firm Brockwell Energy Ltd for up to GBP23 million in cash to Lantern Bidco Ltd.
Hargreaves will receive GBP21 million in initial gross proceeds from the sale. A further GBP2 million contingent consideration will be payable assuming the successful financial close of an unspecified "future development project."
The deal is expected to close no later than next Friday. Hargreaves will record a GBP4 million profit - excluding the contingent consideration - from the sale. Funds will be used to pay down debt.
Brockwell was reported as a discontinued business for the year ended May. During that time, it did not generate any income. Hargreaves will retain an "arm's length" relationship with Brockwell through the retention of some freehold land assets on which Brockwell is looking to develop renewable energy assets.
"The board is pleased to have exchanged contracts for the sale of Brockwell to a partner who we believe has demonstrated its commitment to the successful development of Brockwell's renewable energy asset portfolio", Hargreaves Chairman Roger McDowell said.
Shares in Hargeaves were 0.6% lower at 337.00 pence on Monday.
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