REG - SIMEC AtlantisEnergy - SAE tidal division secures new investment

SIMEC Atlantis EnergyAnnouncement

31/10/2022 07:00

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RNS Number : 5755E  SIMEC Atlantis Energy Limited  31 October 2022

 

 

31 October 2022

SIMEC ATLANTIS ENERGY LIMITED
("SAE", the "Company" and, together with its subsidiaries, the "Group")

 

SAE tidal division secures new investment

 

SAE is pleased to announce that on 19(th) October 2022 it agreed to the sale
of a majority (approximately 79%) stake in its Advanced Tidal Engineering and
Services division ("ATES") to Proteus Marine Renewables Limited ("Proteus").
This division has been responsible for the design of Atlantis' tidal turbines
to date and the deployment and recovery of all turbines at the MeyGen site.
The sale has no impact on SAE's majority ownership of MeyGen plc, with
ownership of the full project development rights and all four turbines at the
MeyGen site remaining with MeyGen plc. SAE remains focused on the development
of the MeyGen site following the recent award of a 28MW Contract for
Difference ("CFD").

 

The sale will allow the newly incorporated Proteus to grow its product and
services offering across a broader scope of marine renewables whilst keeping
its immediate focus on tidal energy.

 

SAE has retained a minority (approximately 21%) shareholding in Proteus and
will continue to enjoy a strong relationship with the business and team
through a Collaboration Agreement. SAE has also agreed on contracts to ensure
the provision of ongoing services that will allow Proteus to provide continued
support to the MeyGen operating tidal array.

 

SAE received an initial cash consideration for the sale of £0.5m and will
receive a deferred cash consideration of up to €0.5m contingent on Proteus
achieving financial close of the Raz Blanchard project.  The sale
significantly reduces Group operating costs, and together with the net sale
proceeds, provides additional funding to support Group operations and the
development of key projects.  In 2021, ATES's pre-tax profit was
approximately £0.4m and its net liabilities as at 30 June 2022 were
approximately £0.5m.

 

The sale allows SAE to achieve its strategic objective of becoming a
sustainable energy and battery storage project developer.  The previous
vertically integrated business model comprising a tidal turbine technology
developer and a tidal project development business served its purpose in the
early stages of the development of the tidal power industry.  As the tidal
power sector reaches maturity, as evidenced by the recent 28 MW MeyGen CFD
award, it is the right time to separate the two businesses, allowing each to
focus on its very different objectives.

 

Graham Reid, CEO of SAE, commented:

 

"We are proud to have developed the ATES business into what it is today and
wish Drew and the team every success in the future. A key part of the sale is
the agreements in place that ensure that it is business as usual for our
existing tidal power projects but allows our focus to be on the delivery of
the MeyGen site, the home of tidal energy."

 

Drew Blaxland, CEO of Proteus commented:

 

"The formation of Proteus and the injection of private equity capital will
give both companies the focus and means to build a pathway to affordable tidal
stream power. In addition to servicing its responsibilities at MeyGen, Proteus
will also be focused on completing its next round of technology advancement.
Key locations for this include Japan and France, where Proteus is now the
majority shareholder in Normandie Hydroliennes, which aims to deploy a 12MW
pilot array in 2025, as part of the EC's target of 1GW of marine energy by
2030."

 

 

For more information, please contact:

 

 SIMEC Atlantis Energy Limited               +44 (0) 7739 832 446
 Sean Parsons, Director of External Affairs
 Investec Bank PLC - NOMAD and Joint Broker  +44 (0) 20 7597 5970
 Jeremy Ellis

 Ben Griffiths

 Arden Partners PLC - Joint Broker             +44 (0) 20 7614 5900

 Ruari McGirr

 Simon Johnson

 Proteus                                       +44 (0) 7795 621 523

 Drew Blaxland, CEO

 

 

Notes to Editors

 

SAE is a global developer, owner and operator of sustainable energy projects
with a diverse portfolio in various stages of development.

https://www.simecatlantis.com/ (https://www.simecatlantis.com/)

 

Proteus website: www.proteusmr.com (http://www.proteusmr.com)

 

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