Rurelec PLC on Monday said it has completed the disposal of its Argentinian assets to Verafont SA, Basic Energy Ltd and Esteban Reynal for up to £4 million.

Shares in Rurelec were up 20% to 0.60 pence each in London on Monday morning.

At the start of June, the South America-focused power producer and developer of power plants said shareholders had approved the disposal of its Argentinian assets.

Rurelec back in May said it intends to pay a special dividend of 0.20 pence per share after completion, which it reiterated on Monday. It will be paid on July 14.

Based on this, Rurelec is now considered to be cash shell. Accordingly, it is required to make an acquisition or acquisitions which constitute a reverse takeover by December 11.

It added that it will continue to explore options for its 701 DU 125 megawatt turbines, including a potential sale.

‘One option under consideration is whether it is possible to ring fence the value of the turbines for shareholders whilst at the same time making the company attractive for new business opportunities through which it can create shareholder value,’ Rurelec said.

It will also be reviewing potential acquisition opportunities as they arise.

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