REG - Good Energy Group - Generation portfolio deferred consideration update

Good EnergyAnnouncement

25/02/2022 13:15

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RNS Number : 8972C  Good Energy Group PLC  25 February 2022

Good Energy Group PLC

 

("Good Energy" or "the Company")

 

Generation portfolio deferred consideration update

 

Good Energy Group PLC (AIM:  GOOD), the 100% renewable electricity supplier
and innovative energy services provider, today announces deferred
consideration received in relation to the disposal of its 47.5MW renewable
generation asset portfolio ("Portfolio") as part of an ongoing strategic shift
to energy and mobility services.

Transaction summary

On 20 January 2022 the Company announced the disposal of its 47.5MW generation
portfolio to Bluefield Solar Income Fund.  Total consideration of up to
£24.5m was comprised of initial and deferred payments.  The initial
consideration of £16.4m, less distributions since the lockbox date of £0.7m,
resulted in £15.7m being paid to the Company on completion.  At that time,
deferred consideration of up to £8.1m remained to be paid, with the final
amount to be calculated with reference to an agreed financial model and based
on the actual operational, technical, real estate and financial position of
the Portfolio.

Deferred consideration update

The final deferred consideration payment has been agreed as follows:

·    £4.3m has now been paid, with a further up to £0.5m to be paid on
30 June 2022, subject to Good Energy meeting all its payment obligations up to
that date for power supplied by the Portfolio to it under the power purchase
agreements.

·    The total deferred consideration is therefore agreed to be up to
£4.8m.

 

·    Of the £3.3m that will not be received, £2.3m arose due to the
impact of a third-party energy yield assessment on the agreed financial model
and £1m arose during detailed technical and financial due diligence.

·    Total consideration received to date is therefore £20.7m, with an
agreed final total consideration of up to £21.2m by 30 June 2022.

 

Nigel Pocklington, Chief Executive Officer of Good Energy, said:

"The sale of our generation portfolio, at a significant premium to book value,
is a fantastic deal for our stakeholders. It is also a significant moment for
Good Energy - we are using the capital from our past to invest in our future.

"Following the shareholder support we received at the recent general meeting,
we look forward to continuing to execute against our clear and well supported
strategic direction. We have an ambitious plan to capitalise on a rapidly
growing market in decentralised, digitised clean energy and transport
services, based on 100% real renewable power."

 

Enquiries

 

 Good Energy Group PLC                                                    Email: press@goodenergy.co.uk

 Nigel Pocklington, Chief Executive

 Charlie Parry, Director of Corporate Strategy & Investor Relations

 Luke Bigwood, Director of External Affairs

 SEC Newgate UK                                                           Email: GoodEnergy@secnewgate.co.uk
 Elisabeth Cowell                                                         Tel: +44 (0)7900 248213

 Investec Bank plc (Nominated Adviser and Joint Broker)
 Sara Hale / Jeremy Ellis                                                 Tel: +44 (0) 20 7597 5970

 Canaccord Genuity Limited (Joint Broker)

 Henry Fitzgerald - O'Connor                                              Tel: +44 (0) 20 7523 4617

 

About Good Energy www.goodenergy.co.uk

 

Good Energy is a supplier of 100% renewable power and an innovator in energy
services. It has long term Power Purchase Agreements with a community of 1,900
independent UK generators.

 

Since it was founded 20 years ago, the company has been at the forefront of
the charge towards a cleaner, distributed energy system. Its mission is to
support UK households and businesses generate, store and share clean power.

 

Good Energy is recognised as a leader in this market, through our green kite
accreditation with the London Stock Exchange and as the only energy supplier
with Gold Standard Uswitch Green Tariff Accreditation for all tariffs.

 

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