Hargreaves Services PLC Disposal of Brockwell Energy Limited (2056D)
08 October 2018 - 5:00PM
UK Regulatory
TIDMHSP
RNS Number : 2056D
Hargreaves Services PLC
08 October 2018
8 October 2018
Hargreaves Services plc
(the "Hargreaves" or the "Group")
Disposal of Brockwell Energy Limited ("Brockwell")
Hargreaves Services plc (AIM: HSP), a diversified group
delivering services to the industrial and property sectors, is
pleased to announce the signing of a conditional agreement for the
sale of the entire share capital of Brockwell Energy Limited to
Lantern Bidco Limited, a newly incorporated company backed by
international investors experienced in UK energy
infrastructure.
Brockwell is the holding company for the Group's interests in
the renewable energy sector which the Board has previously
announced its intention to sell. The initial gross proceeds, which
are payable in cash at completion, are estimated to be GBP21m
including the reimbursement of certain costs to be incurred by
Brockwell prior to completion. A further GBP2m in cash may become
payable, contingent upon the successful financial close of a future
development project.
Completion will take place no later than 19 October 2018, but
the purchaser has the right to withdraw from the contract up to
that time at its sole discretion.
Brockwell has not recorded any income to date and was reported
as a discontinued business in the audited results of Hargreaves for
the year ended 31 May 2018, recording a loss before and after tax
of GBP1m. The net assets of Brockwell at completion are estimated
to be GBP10m. After deduction of transaction fees and other
non-recoverable costs, the Board estimates that Hargreaves will
record a profit on disposal of Brockwell of approximately GBP4m
excluding the contingent consideration. The Board intends to use
the cash received to reduce bank borrowings.
Hargreaves will retain certain freehold land assets on which
Brockwell intends to develop renewable energy assets in the future
and as a result the Group will continue to have a landlord/tenant
relationship with Brockwell on arm's length terms.
Roger McDowell, the Chairman of Hargreaves, said: "The Board is
pleased to have exchanged contracts for the sale of Brockwell to a
partner who we believe has demonstrated its commitment to the
successful development of Brockwell's renewable energy asset
portfolio."
For further details:
Hargreaves Services plc
Gordon Banham, Chief Executive Officer
John Samuel, Group Finance Director 0191 373 4485
Buchanan (Financial PR)
Mark Court/Sophie Wills/Henry Wilson 0207 466 5000
N+1 Singer (Nomad and Joint Corporate
Broker)
Sandy Fraser/Rachel Hayes 0207 496 3000
Investec (Joint Corporate Broker) 0207 597 4000
Sara Hale/Helene Comitis
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END
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