10th Jul 2020 12:12
(Alliance News) - Inspired Energy PLC on Friday announced placing of new shares to raise up to GBP35 million to fund the acquisition of the remaining 60% of Ignite Energy Ltd.
The Lancashire, England-based energy procurement consultant has proposed to raise proceeds of up to GBP30 million by way of an accelerated bookbuilding process.
Inspired Energy plans to raise an additional GBP5 million by way of an open offer made to qualifying shareholders. This will enable the participation of other shareholders who are not able to participate in the placing.
The fundraise is being conducted to fund the acquisition of the outstanding 60% of Ignite Energy Ltd for an initial consideration of GBP11 million on a debt free cash free basis. This follows Inspired Energy's investment in the initial 40% of Ignite Energy in August 2019 for GBP5 million.
The 60% stake buy includes a further contingent consideration of up to a maximum of GBP19 million in cash and shares which may be payable depending on the achievement of certain performance criteria.
Inspired Energy additionally said that Covid-19 impact on customer activity and energy usage resulted in a 9% drop in revenue for the second quarter to June 30 from GBP10.5 million reported a year ago. Adjusted earnings before interest, tax, depreciation and amortisation declined 49% on GBP4.1 million recorded a year ago.
Overall, first half revenue increased by 19% on GBP21.6 million a year and adjusted Ebitda was up 8% on GBP8.7 million. The rise in first half revenue and earnings was attributed to a "very strong" first-quarter.
Inspired Energy intends to restart dividends in conjunction with the release of the company's first half in September.
Shares in Inspired Energy were down 5.5% at 16.21 pence each in London.
By Greg Roxburgh; [email protected]
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