TIDMGKO
RNS Number : 0450W
Greenko Group plc
14 August 2015
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, WITHIN, INTO OR FROM ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF THAT JURISDICTION
FOR IMMEDIATE RELEASE
7.00 a.m. on 14th August 2015
Greenko Group plc ("Greenko" or the "Company")
Greenko signs heads of terms with GIC for the sale of its entire
holding in Greenko Mauritius
Trading Update
In its announcement of 23 June 2015, the Board of Greenko
commented on the move in its share price, and that Cambourne
Investment Pte Ltd, an affiliate of GIC ("together GIC"), and
Global Environment Emerging Markets Fund III LP held shares in
Greenko Mauritius which are capable of being exchanged for shares
in the Company with effect from 1 July 2015.
Greenko today announces that it has signed non-binding heads of
terms with GIC for the sale of all of the Company's shares in
Greenko Mauritius for a gross cash consideration of approximately
GBP 162.8 million (the "Disposal"). The Disposal if completed would
result in the sale of the Company's trading activities and assets,
which comprise the development, ownership and operation of clean
energy projects in India together with the release of the Company
from all associated financial liabilities including debt and
associated minority interests.
Whilst discussions between Greenko and GIC are at an advanced
stage, the heads of terms are non-binding and the Disposal will be
subject to the entry by the Company and GIC into a legally binding
sale and purchase agreement. In addition, completion of the
Disposal will be subject to a number of conditions, including the
approval of Shareholders, in accordance with the requirements of
the AIM Rules, and arrangements being agreed between GIC and the
senior management, including Mahesh Kolli and Anil Chalamalasetty,
for their continued involvement as managers and investors in the
business.
Should the Disposal proceed, it is the intention of the Company
to distribute the proceeds from the disposal, net of certain Indian
taxation, transaction fees and running costs, as yet to be
finalized, before confirming the final capital returns to
shareholders.
A further announcement, including greater detail as to the
background to and reasons for the proposed Disposal and its terms,
as well as the proposed return of capital to shareholders, will be
made after the sale and purchase agreement for the Disposal
referred to above has been entered into.
The Board is being advised by Investec Bank plc and Arden
Partners plc in relation to the Disposal.
Greenko also provides the following trading update for the six
months ended 30 June 2015:-
Power generation in the period increased by 49 percent to 904
GWh, compared to 606 GWh in the comparable period last year.
Installed operational capacity increased to 838 MW during the
period, compared to 596 MW at the end of June 2014. The operating
portfolio is performing well with average availability factors
above 99 percent. This performance has not unfortunately converted
into strong financial results for the period due to a late and
slower start to the current monsoon season. In addition, the 70 MW
Budhil hydro project has operated well, but has been selling power
into the short term merchant market at reduced prices while
negotiations to reach an attractive long term PPA are being
finalised. The 96 MW Dikchu hydro project is at an advanced stage
of completion and expected to commission in Q4 2015. The Company
remains on track to meet its operational installed capacity target
of 1,000 MW this year, with all projects currently under
construction being fully financed. As a result of these factors,
the Company's financial results for the year ending 31 December
2015 are likely to be lower than market expectations.
Overall, the backdrop for clean energy in India remains
extremely positive, with strong Government support, and is
attracting significant inward investment. The Company's wind and
hydro portfolios have reached profitable grid parity with
conventional generation in many states of the country. The Company
will provide a further trading update at the time of its interim
results in September 2015.
Enquiries:
Greenko Group plc +44 (0) 20 7920 3150
Keith Henry
Mahesh Kolli
Anil Chalamalasetty
Arden Partners plc +44 (0)20 7614 5917
Jonathan Keeling/Steve Douglas
Investec Bank plc +44 (0)20 7597 4000
Jeremy Ellis/Nigel Robinson
Tavistock Communications +44 (0)20 7920 3150
Matt Ridsdale/Mike Bartlett/Niall Walsh
This announcement is not intended to, and does not, constitute
or form part of any offer, invitation or the solicitation of an
offer to purchase, otherwise acquire, subscribe for, sell or
otherwise dispose of, or vote in any manner, any securities
pursuant to this announcement or otherwise. The distribution of
this announcement in jurisdictions outside the United Kingdom may
be restricted by law and therefore persons into whose possession
this announcement comes should inform themselves about, and observe
such restrictions. Any failure to comply with the restrictions may
constitute a violation of the securities law of any such
jurisdiction.
The statements contained in this announcement that are not
historical facts are "forward-looking" statements. These
forward-looking statements are subject to a number of substantial
risks and uncertainties, many of which are beyond the Company's
control and actual results and developments may differ materially
from those expressed or implied by these statements for a variety
of factors. These forward-looking statements are statements based
on the Company's current intentions, beliefs and expectations about
among other things, the Company's financial condition, prospects,
growth, strategies and the industry in which the Company operates.
Forward-looking statements are typically identified by the use of
forward-looking terminology such as "believes", "expects", "may",
"will", "could", "should", "would", "intends", "estimates",
"plans", "assumes" or "anticipates" or the negative thereof or
other variations thereon or comparable terminology, or by
discussions of strategy that involve risks and uncertainties. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. In addition,
from time to time, the Company or its representatives have made or
may make forward-looking statements orally or in writing.
Furthermore, such forward-looking statements may be included in,
but are not limited to, press releases or oral statements made by
or with the approval of an authorised executive officer of the
Company. No assurance can be given that such future results will be
achieved; actual events or results may differ materially from those
expressed in or implied by these statements as a result of risks
and uncertainties facing the Company and its subsidiaries. Many of
these risks and uncertainties relate to factors that are beyond the
Company's ability to control or estimate precisely, such as changes
in taxation and fiscal policy, future market conditions, currency
fluctuations, the behaviour of other market participants, the
actions of governmental regulators and other risk factors such as
the Company's ability to continue to obtain financing to meet its
liquidity needs, changes in the political, social and regulatory
framework in which the Company operates or in economic or
technological trends or conditions, including inflation and
consumer confidence, on a global, regional or national basis. Such
risks and uncertainties could cause actual results to vary
materially from the future results indicated, expressed or implied
in such forward-looking statements. The forward-looking statements
contained in this announcement speak only as of the date of this
announcement and the Company undertakes no duty to update any of
them publicly in light of new information or future events, except
to the extent required by applicable law or regulation.
Investec Bank plc, which is authorised in the United Kingdom by
the Prudential Regulation Authority and regulated in the United
Kingdom by the Prudential Regulation Authority and the Financial
Conduct Authority, and Arden Partners plc, which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority,
are acting solely for the Company and no one else in connection
with the Disposal and will not regard any other person (whether or
not a recipient of this announcement) as a client in relation to
the Disposal and will not be responsible to anyone other than the
Company for providing the protections afforded to their clients or
for providing advice in connection with the Disposal or any other
matter referred to in this announcement.
Neither the content of the Company's website (or any other
website) nor the content of any website accessible from hyperlinks
on the Company's website (or any other website) is incorporated
into, or forms part of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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