Heads of Terms

RNS Number : 1206V

Active Energy Group PLC

09 January 2013

 



9 January 2013

AIM: AEG

ACTIVE ENERGY GROUP PLC

("Active Energy" or "the Company")

Heads of Terms

Active Energy Group Plc, the AIM-listed biomass fuel and forestry products provider, is pleased to announce that it has entered into non-binding Heads of Terms to acquire the entire issued share capital of one of its current Joint Venture partners (the "Target Company"), an established wood processing and distribution company currently headquartered in Cyprus with operating subsidiaries in the Ukraine.

If concluded, as the Board expects, the potential acquisition would represent a significant development in the implementation of the Company's business strategy as it would allow the Company to integrate its existing broad raw material supply arrangements with the Ukraine State Agency for Forestry Resources into the currently under-utilised processing, port handling, shipping and distribution facilities of the Target Company.

The Heads of Terms have been agreed between the parties following several months of "hands on" experience and operations under the Joint Venture arrangements, and the potential acquisition would be in the Board's opinion a significant progression of the strategy set out in the Interim Report for the six months ended 30 June 2012.

Completion of the acquisition would require the Company to put in place appropriate financing facilities to support the increased trading activities of the enlarged Company.

The potential acquisition is conditional on a number of matters including satisfactory completion of financial, legal and commercial due diligence processes, which have been initiated.

A further announcement will be made in due course.

Enquiries:

Active Energy Group Plc Richard Spinks, Chief Executive Officer	Tel:[phone]
Merchant Securities Limited (Nominated Adviser and Broker) Simon Clements/Catherine Miles	Tel: [phone]

 

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