HydroDec Group plc Additional Investment in Hydrodec of North America (6597M)
17 October 2016 - 5:00PM
UK Regulatory
TIDMHYR
RNS Number : 6597M
HydroDec Group plc
17 October 2016
17 October 2016
Hydrodec Group plc
("Hydrodec" or the "Company")
Additional G&S Investment in Hydrodec of North America
The Company is pleased to confirm that under the terms of its
agreement of April 2013 with the G&S Technologies Group
("G&S") (the "2013 Agreement"), and pursuant to the
commissioning of additional capacity at the Canton plant, G&S
has acquired an additional 12.45% of Hydrodec's US operation,
Hydrodec of North America ("HoNA"), for US$1.7 million as
prescribed by the 2013 Agreement. The consideration has been
satisfied by the provision of feedstock to the value of US$1.37
million and the payment, with immediate effect, of US$0.33 million
in cash. Upon completion of this purchase Hydrodec retains 62.5% of
the voting interests in HoNA.
The 2013 Agreement also provides that, upon establishing an
additional two operating trains (being trains 7 and 8),
representing an anticipated additional 15 million litres of
capacity, financed equally between the owners, G&S will have
the right to acquire a further and final interest of HoNA for
US$1.7 million, to bring G&S' overall interest to 49.9%.
Commenting on this investment, Chris Ellis, Chief Executive
Officer of Hydrodec said: "With G&S we continue to focus on
creating the best quality transformer oil in the US market and
positioning ourselves to take advantage of significant forecast
growth in demand in the United States. We will now evaluate the
most appropriate timing and location for the expansion
programme."
For further information please contact:
01372 824
Hydrodec Group plc 750
Chris Ellis, Chief Executive
Officer
Canaccord Genuity (Nominated 020 7523
Adviser and Broker) 8000
Henry Fitzgerald-O'Connor
Richard Andrews
Vigo Communications (PR 020 7830
adviser to Hydrodec) 9700
Patrick d'Ancona
Chris McMahon
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil
re-refining and chemical process initially targeted at the
multi-billion US$ market for transformer oil used by the world's
electricity industry. MarketsandMarkets forecasts that the global
transformer oil market is expected to grow from US$1.98 billion in
2015 to US$2.79 billion by 2020 at a CAGR of 7.14%. Spent oil is
currently processed at two commercial plants with distinct
competitive advantage delivered through very high recoveries (near
100%), producing 'as new' high quality oils at competitive cost and
without environmentally harmful emissions. The process also
completely eliminates PCBs, a toxic additive banned under
international regulations. Hydrodec's plants are located at Canton,
Ohio, US and Bomen, New South Wales, Australia.
Hydrodec's shares are listed on the AIM Market of the London
Stock Exchange. For further information, please visit
www.hydrodec.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGGWAUUPQPGQ
(END) Dow Jones Newswires
October 17, 2016 02:00 ET (06:00 GMT)
Hydrodec (LSE:HYR)
Historical Stock Chart
From Apr 2024 to May 2024
Hydrodec (LSE:HYR)
Historical Stock Chart
From May 2023 to May 2024