Disposal of Brockwell Energy Limited

RNS Number : 6861E

Hargreaves Services PLC

22 October 2018

 

22 October 2018

Hargreaves Services plc

("Hargreaves" or the "Group")

                                        Disposal of Brockwell Energy Limited ("Brockwell")

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the industrial and property sectors, is pleased to announce the completion of the sale of the entire share capital of Brockwell to Lantern Bidco Limited, a newly incorporated company backed by international investors experienced in UK energy infrastructure.

As indicated in the announcement released on 8 October 2018, the initial gross proceeds, which have been paid in cash at completion, are £21m. A further £2m in cash may become payable, contingent upon the successful financial close of a future development project.

The net assets of Brockwell at completion were £10m. After deduction of transaction fees and other non-recoverable costs, the Board estimates that Hargreaves will record a profit on disposal of Brockwell of approximately £4m excluding the contingent consideration. The Board intends to use the cash received to reduce bank borrowings.

Hargreaves retains certain freehold land assets on which Brockwell intends to develop renewable energy assets in the future and as a result the Group will continue to have a landlord/tenant relationship with Brockwell on arm's length terms.

Roger McDowell, the Chairman of Hargreaves, said: "The Board is pleased to have completed the sale of Brockwell and wishes the new owners every success in the future development of Brockwell's renewable energy asset portfolio."

For further details: 

Hargreaves Services plc Gordon Banham, Chief Executive Officer John Samuel, Group Finance Director	0191 373 4485
Buchanan (Financial PR) Mark Court/Sophie Wills/Henry Wilson	0207 466 5000
N+1 Singer (Nomad and Joint Corporate Broker) Sandy Fraser/Rachel Hayes	0207 496 3000
Investec (Joint Corporate Broker)                                                            0207 597 4000 Sara Hale/Helene Comitis

 

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