REG - Esken Limited - Disposal

EskenAnnouncement

20/06/2023 07:00

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RNS Number : 2313D  Esken Limited  20 June 2023

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018.

 

20 June 2023

ESKEN LIMITED

("Esken", the "Group" or the "Company")

 

Sale of investment in Mersey Bioenergy

 

Esken, the aviation and renewable energy group, announces that its wholly
owned subsidiary, Esken Green Energy Limited, has today agreed the sale of its
investment in Mersey Bioenergy Holdings Limited and its wholly owned
subsidiary (together "Mersey Bioenergy") to UK Waste Resources and Energy
Investments L.P., a member of the Bioenergy Infrastructure Group, for a total
cash consideration of £9m (the "Disposal").

 

Mersey Bioenergy owns and operates a combined heat and power plant in Widnes
and the Disposal is part of Esken's ongoing strategy to dispose of non-core
assets.

 

Esken's investment in Mersey Bioenergy comprised a 39.6% shareholding and
£7.3m of unsecured 13.5% loan notes with a ten-year term ending in November
2024. The shareholding and loan notes had been fully written down by Esken,
with a £nil net book value as at 31 August 2022, and the investment in Mersey
Bioenergy did not contribute to either profit or loss for the Group in the
year ended 28 February 2022.

 

The consideration of £9m will be paid in cash on completion, and the cash
will be used for repayment of debt and working capital purposes. Completion
will take place once certain conditions have been satisfied, including
conditions which relate to the refinancing of Mersey Bioenergy by Bioenergy
Infrastructure Group  and the capitalisation of all existing loan notes
issued by Mersey Bioenergy Holdings Limited. Completion is expected to take
place before the end of August 2023.

 

This Disposal does not impact the Mersey Bioenergy Fuel Supply Agreement with
Esken Renewables, which expires July 2035.

 

Additional information

 

The Disposal constitutes a Class 2 transaction for Esken for the purposes of
the Financial Conduct Authority's Listing Rules.

 

The current shareholders in Mersey Bioenergy Holdings Limited are: UK Waste
Resources and Energy Investments L.P. (49.9%), Esken Green Energy Limited
(39.6%) and Burmeister & Wain Scandinavian Contractor A/S (10.5%).

 

Enquiries:

Esken Limited    C/o Tulchan Communications

Charlie Geller, Group Communications Director

Tulchan Communications

Olivia Peters / Lisa Jarrett-Kerr

020 7353 4200

esken@tulchangroup.com

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