18th Jun 2014 07:41
LONDON (Alliance News) - Rame Energy PLC Wednesday said it has acquired a UK solar energy company in a GBP150,000 deal, in a bid to strengthen its international energy consultancy business.
In a statement, the energy consultant, engineer and power generator said that it has acquired Beco Ltd, which designs and installs solar energy systems. Rame Energy said the deal is expected to boost earnings in the six months ending December 31.
Beco reported a GBP17,208 loss on revenues of GBP877,344 between June 21, 2012 and June 30, 2013. In the nine months ended March 31, 2014, Beco was profitable, according to Rame Energy, and pulled in GBP1.3 million in revenue. Its current order book is valued at about GBP1.3 million up to September 30.
Rame Energy said it will pay for the deal by issuing 989,283 new shares, which will represent a 1% stake in the company. In addition, Rame will lend GBP100,000 to Beco so it can partially redeem a proportion of its GBP239,255 in outstanding shareholder loans. The remainder of the loans will be paid out of Beco's profits over two years, according to Rame.
"Beco's proven expertise in both grid-connected and off-grid solar power projects, and the synergies between our groups, will allow Rame to substantially expand our solar power activities worldwide, and also strengthen our engineering division's capability to deliver cost effective and reliable power solutions to blue chip customers around the world," Chief Executive Tim Adams said in a statement.
"As well as the potential to increase turnover and profits at Rame's engineering division, the acquisition of Beco will support the opportunity we have identified to develop solar power projects as an independent power producer, similar to the wind power projects we are constructing in Chile, where the first two of a multi-project 300MW three year programme are due to come on stream later this year," Adams added.
Rame Energy shares were down 3.2% at 15.00 pence early Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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