Oracle Power PLC Acquisition of Interest in Sindh Carbon Energy (6771B)
12 January 2018 - 6:00PM
UK Regulatory
TIDMORCP
RNS Number : 6771B
Oracle Power PLC
12 January 2018
12 January 2018
Oracle Power PLC
("Oracle" or "the Company")
Acquisition of Remaining Interest in Sindh Carbon Energy
Limited
Oracle Power PLC (AIM:ORCP), the UK energy developer of a
combined lignite coal mine and mine mouth power plant located in
the south-eastern Sindh Province of Pakistan, is pleased to
announce that it has reached an agreement to acquire the remaining
shares outstanding in Sindh Carbon Energy Limited ("SCEL"), that it
did not already own. SCEL is the holder of the mining lease under
development.
Oracle has reached an agreement to acquire the remaining 199,999
shares in SCEL which are not owned by Oracle from the current
shareholder, Sindh Koela Limited (SKL) a private company
incorporated in Pakistan, for a maximum consideration of GBP3.6
million. The Initial consideration of GBP2.2 million will be
satisfied through the issuance of 95,652,174 shares in Oracle (the
"Acquisition Shares") at 2.3p per share, being the same price as
the Company's recent Equity Placing announced on 28 December 2017.
If upon financial close with the previously identified and
announced Chinese State-Owned Enterprises, the value of the
Acquisition Shares issued to SKL is less than GBP3.6 million based
on Oracle's share price at the time, Oracle will issue further
shares at the prevailing market price to SKL to make good any
shortfall.
Upon completion of the acquisition, Oracle will have 100%
ownership of the Pakistani operating companies for both mining
(through SCEL) and power (through Thar Electricity (Private) Ltd).
This was one of the key outstanding requirements of the Company's
potential strategic partners, with whom the Company has entered
into a Memorandum of Understanding for the funding and development
of the US$1.6bn project, as announced on 21 November 2017.
In the year ended 31(st) December 2016, SCEL had gross and net
assets of approximately GBP1,480,956 and GBP603,408 respectively
and made a loss of GBP3,536. Oracle currently has a loan receivable
from SKL of approximately GBP15,000, and as part of Oracle's
acquisition of the balancing stake in SCEL from SKL, the parties
have agreed to waive the loan in full.
It should be noted that a shareholder of SKL is the father of
Oracle's Chief Executive Officer and neither of these individuals
have been involved in negotiating this transaction.
Anthony Scutt, Chairman of Oracle, said:
"The move to 100% ownership of SCEL is a material development
for Oracle, clearing a significant hurdle as the Company moves to
financial close. Sindh Koela Limited now stand to benefit alongside
existing Oracle shareholders as the project advances and the
current disparity between the market valuation and that of the
Project narrows.
I look forward to updating all shareholders as further
developments arise."
Settlement and dealings
Application will be made for the Acquisition Shares, which will
rank pari passu with the Company's existing issued ordinary shares,
to be admitted to trading on AIM. The Acquisition Shares are
expected to be admitted to trading on AIM on or around 18 January
2018 (the "Admission").
Following the Admission of the Acquisition Shares, the Company's
enlarged issued share capital will comprise 1,057,535,872 ordinary
shares. The Company does not hold any shares in treasury. This
figure of 1,057,535,872 ordinary shares may be used by the
Company's shareholders as the denominator for the calculations by
which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of
the Company under the FCA's Disclosure and Transparency Rules.
Ends
For further information please contact:
Oracle Power PLC +44 (0) 203
Shahrukh Khan 580 4314
Brandon Hill Capital Limited +44 (0)203
Oliver Stansfield 463 5000
Peterhouse Corporate Finance +44 (0) 207
Charles Goodfellow 220 9791
Grant Thornton UK LLP +44 (0) 207
Salmaan Khawaja, Richard Tonthat 383 5100
Blytheweigh
Tim Blythe, Camilla Horsfall, +44 (0) 207
Megan Ray 138 3204
Fortbridge Consulting +44 (0)7966
Matt Beale, Bill Kemmery 389196
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQFKDDDKBKBNDD
(END) Dow Jones Newswires
January 12, 2018 02:00 ET (07:00 GMT)
Oracle Power (LSE:ORCP)
Historical Stock Chart
From Apr 2024 to May 2024
Oracle Power (LSE:ORCP)
Historical Stock Chart
From May 2023 to May 2024