14th Oct 2014 06:15
LONDON (Alliance News) - Building products company SIG PLC Tuesday said it has sold its 50.6% stake in Ice Energy Technologies Ltd to that company's existing management for GBP1, although it could earn up to GBP5 million on the sale depending on the future performance of the sold business up to the end of March 2019.
In a statement, SIG said It has also provided Ice Energy with a GBP0.85 million interest bearing loan, repayable in five years.
SIG expects to book an exceptional charge in 2014 of about GBP8 million for the divestment, of which about GBP1 million is in cash. It said it had recognised about GBP3.3 million of the charge in its first-half accounts.
Ice Energy is a renewable energy products provider which specialises in ground and air source heat pumps. The disposal follows challenging market conditions resulting from delays to, and the subsequent slow uptake of, the UK government's Renewable Heat Incentive scheme, SIG said.
By Steve McGrath; [email protected]; @stevemcgrath1
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