3rd Dec 2021 16:25
(Alliance News) - Ncondezi Energy Ltd announced on Friday that it had sold its renewable energy subsidiary, Mozambique Green Power, to Green Energy PLC for USD1.3 million in cash.
The Mozambique-based power development company said it will use proceeds from the sale to repay its bridge loan due on Tuesday next week.
Green Energy is a newly formed company controlled by Ncondezi Energy's Non-Executive Director Scott Fletcher.
Any remaining cash from the sale, estimated at USD650,000, will be used for general working capital purposes.
The renewable energy subsidiary comprises a solar energy and battery storage project and was Ncondezi Energy's first commercial and industrial project.
Non-Executive Director Aman Sachdeva said: "Following the strategic review we launched in June and in an increasingly challenging post COP26 environment, selling the [commercial and industrial] subsidiary allows the company to fully focus on progressing the company's main project, the Ncondezi Project with our strategic partner, China Machinery Engineering Corp and we are working on finalising the tariff as soon as possible."
Shares in Ncondezi Energy were down 3.1% at 1.14 pence on Friday in London.
By Heather Rydings; [email protected]
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