REG - Scirocco Energy PLC - Completion of EAG Divestment

Scirocco EnergyAnnouncement

31/01/2024 12:15

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RNS Number : 5596B  Scirocco Energy PLC  31 January 2024

31 January 2024

Scirocco Energy plc

 

("Scirocco" or "the Company")

 

Completion of EAG Divestment

 

Scirocco Energy plc (AIM: SCIR), the AIM investing company targeting
attractive assets within the European sustainable energy and circular economy
markets, today announces an update on the divestment of its interest in Energy
Acquisitions Group Limited ("EAG") (the "Transaction").

 

Following receipt of the waiver from AIB, Scirocco is pleased to announce the
successful completion of the sale of its interest and investment in EAG, in
which it held 50% interest, for a gross enterprise value of £2.6 million
before adjustments, plus a contingent consideration of up to a further
£150,000, to private equity firm OrbeNovo Capital. This transaction,
initially disclosed on 21 December 2023, and detailed in the circular
published on 22 December 2023, received approval from shareholders at a
General Meeting convened on 10 January 2024.

 

Highlights

·    The Transaction will result in a firm net consideration of c. £702k
payable to Scirocco, which is expected to be received today, will be retained
by the Company.

·    Contingent consideration of up to £150k, payable in tranches, if and
when EAG completes the acquisition of certain target anaerobic digestion sites
which have been developed in EAG's deal pipeline within the last twelve
months.

The Board continues its review of a range of potential alternative options
available to it by which it is able to deliver value to Shareholders, which
may include the distribution of available cash, further investments in line
with its investing policy and/or the deployment of the proceeds in pursuit of
a reverse takeover transaction. Linked to this is the receipt of the first
contingent payment of $3 million pursuant to the disposal of the Company's
interest in the Ruvuma asset, which is still expected to be received later in
Q1 2024.

 

Commenting on the update, Alastair Ferguson, Chairman of Scirocco, said:

"I am pleased to announce the completion of the divestment of our interests in
EAG. The Board is presently progressing its review of a range of potential
options available to deliver value to shareholders and these funds will
provide additional optionality to underpin that review process. The Company is
in a strong position in terms of having a clean structure, zero debt and a
strong and growing cash position. We look forward to providing further updates
on that review process as appropriate."

For further information:

 Scirocco Energy plc                               +44 (0)20 7466 5000

 Tom Reynolds, CEO

 Strand Hanson Limited, Nominated Adviser          +44 (0) 20 7409 3494

 Ritchie Balmer / James Spinney / Robert Collins
 WH Ireland Limited, Broker                        +44 (0) 207 220 1666

 Harry Ansell / Katy Mitchell
 Buchanan, Financial PR                            +44 (0)20 7466 5000

 Ben Romney / Barry Archer / George Pope

 

 

 

 

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