Esken shares up following GBP9 million sale of investment

(Alliance News) - Esken Ltd on Tuesday said it has agreed to sell its investment in Mersey ...

Alliance News 20 June, 2023 | 8:42AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Esken Ltd on Tuesday said it has agreed to sell its investment in Mersey Bioenergy Holdings Ltd for GBP9 million.

Shares in the Widnes, England-based infrastructure, aviation and energy company were up 8.0% to 3.84 pence each in London on Tuesday morning.

It said that its wholly owned subsidiary Esken Green Energy Ltd has sold its investment in Mersey Bioenergy to UK Waste Resources and Energy Investments LP, a member of the Bioenergy Infrastructure Group.

Mersey Bioenergy owns and operates a combined heat and power plant in Widnes. Esken's investment in Mersey Bioenergy comprises a 39.6% shareholding and GBP7.3 million of unsecured 13.5% loan notes with a ten-year term ending in November 2024.

Esken said the disposal is part of the company's ongoing strategy to dispose of non-core assets. The company's investment in Mersey Bioenergy did not contribute to either profit or loss for Esken in the year ended 28 February 2022.

Esken added that the disposal will not impact the Mersey Bioenergy Fuel Supply Agreement with Esken Renewables, which expires July 2035.

The consideration of GBP9 million will be paid in cash on completion, and the cash will be used for repayment of debt and working capital purposes.

Completion is expected to take place before the end of August.

By Sophie Rose, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Esken Ltd 0.07 GBX -12.50 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures