Trading Emissions PLC
Trading Emissions PLC (the "Company") is pleased to announce the sale of a portion of its Italian solar portfolio.
The Company's ultimately wholly owned subsidiary, TEP (Solar Holdings) Limited ("TEPS"), has entered into a sales and purchase agreement ("SPA") with a member of the Sonnedix group ("Sonnedix") in respect of the sale of its entire interest in two Italian subsidiaries, Etuno Srl and Solar Energy Italia 6 Srl (also known as Librandello), comprising three ground-mounted solar photovoltaic plants located in Basciano and Cupello in Abruzzo and Chiaramonte Gulfi in Sicily respectively, with combined capacity of 11.2MW (the "Investments").
The aggregate net proceeds from the sale of the Investments, after allowing for transaction costs, are estimated to be EUR8.5 million. Under the terms of the SPA, completion and receipt of the sales proceeds are subject to various conditions precedent being fulfilled by TEPS no later than 14 December 2016. Of the payment by Sonnedix at completion, EUR3 million will be deposited in escrow, to be released to TEPS as to EUR1 million on the first anniversary after completion and the remaining EUR2 million on the second anniversary after completion, subject to no claims having been received pursuant to indemnities provided by TEPS customary for this type of transaction.
Sonnedix (http://www.sonnedix.com/) is an independent solar power producer with plants at various stages of maturity located globally, including Italy.
The Company was represented and advised in this transaction by ValeCap Srl (http://www.valecap.com/) and Orrick, Herrington & Sutcliffe LLP (http://www.orrick.com).
The Company's financial statements are prepared in accordance with IFRS 10 and all subsidiaries are measured at fair value through profit or loss. As the Investments were not consolidated into the Company's financial statements for the periods ended 31 December 2015 and 30 June 2015, no operating profits or losses were attributed to the Company. The Company disclosed in its interim financial statements for the period ended 31 December 2015 a fair value of its private equity portfolio of £16.1 million (equivalent, at that date, to EUR21.8 million). The Investments comprised part of the Company's private equity portfolio.
The net proceeds to be received by TEPS from Sonnedix will be paid to the Company. In accordance with the Company's investment policy, all cash not required to meet operating costs will be distributed to shareholders.
FIM Capital Limited +44 (0) 1624 681250
Liberum Capital Limited +44 (0) 20 3100 2222
(Steve Pearce/ Henry Freeman / Josh Hughes)
This information is provided by RNS