22nd Jan 2010 07:00
22 January 2010
Renewable Energy Holdings plc
("REH" or the "Company")
Strategic Disposal of Landfill Gas Asset
Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operator of European wind power, is pleased to announce that, on 21 January 2010, it entered into a binding sale and purchase agreement (the "SPA") relating to the proposed disposal of the Company's 1MW landfill gas asset, Bryn Posteg, located in Mid Wales ("Bryn Posteg"), (the "Disposal") to Sundorne Products (Llanidloes) Limited ("Sundorne").
The aggregate consideration due to REH is payable in cash for up to £2.75 million, structured and payable as follows:
£2.0 million payable no later than 31 March 2010; and
an additional amount up to £750,000, payable in the event that Sundorne realises revenue in excess of the current 1MW electrical connection from the gas arising out of the landfill site (with a one-off payment of £250,000 if no such additional revenue is realised by 31 January 2012).
The audited accounts for REH for the financial year ended 31 December 2008 showed revenues and profit before tax for Bryn Posteg of £509,674 and £121,796 respectively. Bryn Posteg had unaudited net assets of circa £1.8 million as at 30 June 2009.
The Disposal of this non-core asset is consistent with the Company's current focus of investing in, developing and operating European wind assets. The proceeds of the Disposal are intended to be used for general working capital purposes.
Mike Proffitt, Chief Executive of REH, commented:
"The successful disposal of the Bryn Posteg landfill gas asset, along with the disposal of our CETO Wave Energy Technology in December 2009, further demonstrates REH's commitment to focus on its European wind farm portfolio. With operating assets in Germany and development assets in Poland and Wales, we have a strong pipeline for growth and look forward to updating the market in due course."
- Ends -
For further information, please contact:
|
Renewable Energy Holdings plc Mike Proffitt, Chief Executive |
Tel: +44 (0)16 2464 1199 |
|
Strand Hanson Limited Rory Murphy / James Spinney |
Tel: +44 (0)20 7409 3494 |
|
Novus Capital Markets Ltd Charles Goodfellow / Paul Dudley |
Tel: +44 (0)20 7107 1872 |
|
Financial Dynamics Billy Clegg / Ed Westropp / Alex Beagley |
Tel: +44(0)20 7831 3113 |
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