1st Apr 2014 11:43
LONDON (Alliance News) - REACT Energy PLC Tuesday said it has settled the remaining amount to be paid to former Reforce Energy shareholders, as part of its previous deal to takeover the renewable energy company in 2012.
The renewable energy producer in the UK said necessary conditions in order to pay out the deferred consideration have now been met, and it has issued 1.2 million new shares, following consolidation, to former shareholders in Reforce Energy.
Consideration for the deal was first completed through the issue of 139.3 million shares with a further 59.7 million shares to be issued once Reforce obtained planning permissions for eight renewable energy projects, both share amounts prior the REACT's 1-for-50 share consolidation in December 2013. Following the new issue Tuesday, REACT's has 29.6 million shares issued.
The company added that following the deferred payment, Steve Dalton, a director of REACT and former shareholder of Reforce, has a 2.3% stake in REACT.
REACT shares were down 4.6% to 21.00 pence Tuesday afternoon.
By Tom McIvor; [email protected]; @TomMcIvor1
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