REG - eEnergy Group PLC Luceco PLC - Strategic Investment from Luceco plc

LucecoAnnouncement

08/11/2023 07:00

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RNS Number : 7097S  eEnergy Group PLC  08 November 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU AS IT FORMS PART OF THE LAW OF ENGLAND AND WALES BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

8 November 2023

 

eEnergy Group plc

("eEnergy" or "the Company")

 

Strategic Investment from Luceco plc

 

Board considering unlocking value via a disposal of the Energy Management
division

 

eEnergy (AIM: EAAS), the net zero energy services provider, is pleased to
announce it has signed a strategic investment agreement (the "Investment")
with long standing partner, Luceco plc ("Luceco"), pursuant to which Luceco
will invest £1,753,900 via a subscription for new ordinary shares ("New
Shares") in eEnergy.

eEnergy has a longstanding relationship with Luceco principally relating to
its role as a significant supply partner to the Company's eLight business,
part of its Energy Services division. Luceco is a leading supplier of wiring
accessories, EV chargers, LED lighting, and portable power products and is
listed on the Main Market of the London Stock Exchange.

The subscription is for 35,078,000 New Shares at a price of 5p per share (the
"Subscription Price") representing a premium of approximately 25% to the
Company's closing share price on 7 November 2023. Following completion of the
Investment, Luceco will hold approximately 9.1% of the Company's issued share
capital as enlarged by the issue of the New Shares. Completion of the
Subscription is subject to admission of the New Shares to trading on AIM. The
subscription proceeds will be used for general working capital purposes,
including settlement of certain trading balances due to Luceco.

Following the Investment, eEnergy will maintain Luceco's share of applicable
lighting spend at current levels, subject to competitive pricing and stock
being made available. For so long as Luceco holds more than 6% of the voting
rights in the Company, the Investment entitles it to appoint a director to the
Board of eEnergy together with a right to participate, pro rata to its
shareholding, in certain issues of equity securities including any future
equity fundraisings.

Potential disposal of Energy Management Division

During the first half of 2023, the Board received a number of unsolicited
approaches expressing interest in acquiring the Energy Management division
(the "Division"). The Board engaged professional advisers to conduct a
strategic review of the Division, following which the Board received a number
of indicative cash offers which valued the Division in excess of £30 million.
The Board has now entered into a period of exclusivity with one of the
interested parties.

The Board intend to re-invest proceeds from any sale of the Division to ensure
the Company and its subsidiaries ("Group") have the appropriate financial
resources to capitalise on the substantial growth potential within its Energy
Services division.

While discussions are at an advanced stage, there is no guarantee they will
lead to a transaction or as to the final terms of any such transaction. Any
disposal of the Division will require the approval of shareholders by way of
an ordinary resolution at a general meeting in accordance with the AIM Rules
for Companies. A further announcement will be made as appropriate.

Admission and Settlement

Application will be made for the New Shares to be admitted to trading on AIM
("Admission"). It is expected that Admission will become effective and
dealings in the New Shares will commence at 8.00 a.m. on or around 13 November
2023.

The New Shares will be allotted and credited as fully paid and will rank pari
passu in all respects with the Company's existing Ordinary Shares, including
the right to receive all dividends and other distributions declared, made or
paid on or after the date on which they are issued.

Total voting rights

On Admission, the Company's total issued share capital will consist of
387,224,625 Ordinary Shares with voting rights. The Company does not hold any
Ordinary Shares in treasury and accordingly there are no voting rights in
respect of any treasury shares. On Admission, the abovementioned figure of
387,224,625 Ordinary Shares may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
Company under the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.

Harvey Sinclair, CEO of eEnergy plc, commented: "I am delighted to welcome
Luceco as a new shareholder to the Group. The strategic investment cements our
already longstanding relationship and demonstrates our combined confidence in
the growth opportunities for our markets. I look forward to working with John
and his team on this new partnership.

"As discussed at our Interim Results, we continue to position the Group to be
able to win new larger mandates and optimise financing solutions. Following a
number of inbound enquiries earlier in the year we have appointed an
independent adviser and entered into a short period of exclusivity with one of
the parties which has expressed interest in acquiring our Energy Management
division. We will update shareholders on this process as appropriate."

John Hornby, CEO of Luceco plc, commented: "Energy efficiency has been an
important driver of growth for Luceco through our LED lighting category.
More recently we have invested in EV charging because we anticipate that this,
and the clean energy category more generally, will be an important growth
area.

eEnergy's Energy Services division is already an important customer for our
lighting projects business.  As the economy decarbonises it is well
positioned to become an increasingly relevant channel in the non-residential
segment, and we look forward to supporting the growth of eEnergy and exploring
the potential for increased co-operation between our businesses."

 

 

Contacts:

 

 eEnergy Group plc                              Tel: +44 20 7078 9564
 Harvey Sinclair, Chief Executive Officer       info@eenergyplc.com ; www.eenergyplc.com (http://www.eenergyplc.com)

 Crispin Goldsmith, Chief Financial Officer

 Strand Hanson Limited (Nominated Adviser)      Tel: +44 20 7409 3494
 Richard Johnson, James Harris

 Canaccord Genuity Limited (Joint Broker)       Tel: +44 20 7523 8000
 Max Hartley, Harry Pardoe (Corporate Broking)

 Turner Pope Investments (Joint Broker)         Tel: +44 20 3657 0050
 Andy Thacker, James Pope                       info@turnerpope.com

 Tavistock                                      Tel: +44 207 920 3150
 Jos Simson, Simon Hudson, Katie Hopkins        eEnergy@tavistock.co.uk

 

About eEnergy Group plc

eEnergy (AIM: EAAS) is a net zero energy services provider, empowering
organisations to achieve net zero by tackling energy waste and transitioning
to clean energy, without the need for upfront investment. It is making net
zero possible and profitable for all organisations in four ways:

 ·         Transition to the lowest cost clean energy through the Group's digital
           procurement platform and energy management services. 
 ·         Tackle energy waste with granular data and insight on energy use and dynamic
           energy management. 
 ·         Reduce energy use with the right energy efficiency solutions without upfront
           cost. 
 ·         Reach net zero with onsite renewable generation and electric vehicle (EV)
           charging.

 

eEnergy is a Top 5 B2B energy company and has been awarded The Green Economy
Mark by London Stock Exchange.

 

About Luceco plc

 

Luceco plc - Bringing Power To Life

 

Luceco plc (LSE:LUCE) is a supplier of high quality and innovative wiring
accessories, EV chargers, LED lighting and portable power products for a
global customer base.

 

For more information, please visit www.lucecoplc.com
(http://www.lucecoplc.com)

 

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