Telecom Plus PLC Disposal of Investment in Opus Energy Group Ltd (0544R)
06 December 2016 - 6:15PM
UK Regulatory
TIDMTEP
RNS Number : 0544R
Telecom Plus PLC
06 December 2016
Telecom Plus PLC ("the Company")
Disposal of Investment in Opus Energy Group Limited
Telecom Plus PLC announces that Opus Energy Group Limited
("Opus"), in which the Company hold a 20% equity shareholding, is
to be acquired by Drax Group PLC ("Drax"). Following completion,
which is expected to take place in the first quarter of 2017, the
Company will receive approximately GBP71 million in cash for its
shareholding in Opus; at 30 September 2016 the book value of these
shares in the Company's group accounts was GBP7.4 million.
Completion of the acquisition is conditional on, amongst other
things, the approval of Drax's shareholders and the approval by the
European Commission of the CfD Investment Contract awarded to Drax
by the UK government; Drax has today confirmed that it remains
confident of approval of the CfD Investment Contract.
The Company's core business remains highly cash generative, and
it retains access to significant unutilised banking facilities. The
Board therefore intends to return the full net proceeds from this
transaction to shareholders.
This is expected to take place through a tender offer shortly
after the publication of the Company's annual results for the year
to 31 March 2017, which are due to be issued in June 2017. A
circular will be sent to shareholders containing full details of
how to participate in due course.
Impact of disposal
As a result of the transaction the Company will recognise an
exceptional profit of approximately GBP60 million during the
current financial year. In addition, the Company's share of Opus
profit in the current financial year up to the date of completion
is expected to amount to approximately GBP5 million (2016: GBP5.6
million). In future financial periods the Company's profit will be
reduced by the absence of any contribution from Opus, although any
adverse impact on earnings per share will be partially offset by
the reduction in the number of shares in issue following the
planned tender offer.
Notes:
This announcement contains inside information.
For further information, please contact:
Telecom Plus PLC
Andrew Lindsay, CEO 020 8955 5000
Nick Schoenfeld, CFO
Peel Hunt
Dan Webster / Jock Maxwell Macdonald 020 7418 8900
JP Morgan Cazenove
Christopher Wood / Hugo Baring 020 7742 4000
MHP Communications
Reg Hoare / Katie Hunt / Giles Robinson 020 3128 8156
About Telecom Plus PLC ("Telecom Plus"):
www.utilitywarehouse.co.uk
Telecom Plus, which owns and operates the Utility Warehouse
brand, is the UK's only fully integrated provider of a wide range
of competitively priced utility services spanning both the
Communications and Energy markets.
Members benefit from the convenience of a single monthly
statement, consistently good value across all their utilities and
exceptional levels of service. Telecom Plus does not advertise,
relying instead on 'word of mouth' recommendation by existing
satisfied Members and Partners in order to grow its market
share.
Opus Energy Group Limited is a successful, profitable and fast
growing independent supplier of gas and electricity to small,
medium and large business customers.
Telecom Plus is listed on the London Stock Exchange (Ticker: TEP
LN). For further information please visit
www.utilitywarehouse.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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