18th Jun 2019 12:43
(Alliance News) - SIMEC Atlantis Energy Ltd said Tuesday it was no longer looking to complete the Green Highland Renewables acquisition from largest shareholder SIMEC Energy under its current terms.
Instead it will pursue a new deal under fresh financing arrangements.
In November, SIMEC Atlantis agreed to buy the Green Highland Renewables portfolio from SIMEC Energy for GBP124.7 million. As part of this, it planned to benefit from a GBP24 million capital expenditure facility as well as a GBP2 million revolving credit facility.
On Tuesday, however, SIMEC Atlantis decided that an "alternative transaction structure" with regards to the GHR purchase would be in the interests of shareholders "after assessing the financing options available". Consequently, SIMEC Atlantis "will not be proceeding with the acquisition of GHR as previously envisaged".
SIMEC Atlantis, however, confirmed it remains in talks with SIMEC Energy and lenders with regards to an alternative acquisition structure.
"Further updates will be provided when appropriate. There can be no guarantee that any transaction in relation to GHR will reach a conclusion," SIMEC Atlantis explained.
Shares in SIMEC Atlantis were 5.6% lower at 17.70 pence in London on Tuesday.
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