Camco completes ESD Sinospher

RNS Number : 5163H

Camco International Ltd

06 November 2008

 



6 November 2008

Camco International Limited (the 'Company' or 'Camco')

Camco today announces that it has completed the acquisition of the 49% minority interest in ESD Sinosphere ('ESDS'), the Chinese subsidiary of ESD, for US$246,823. ESDS is engaged in the provision of technical due diligence, emissions assessments, carbon management and sustainable development consulting services in China. Camco acquired its initial 51% interest in ESDS via the acquisition of ESD in 2007.

Camco CEO Jeff Kenna said 'the purchase of the minority interests demonstrates Camco's ongoing desire to grow our Chinese operations. We have continued to see the benefits of a global consulting platform with a range of new opportunities emerging.'  

In the year to 31 December 2007 the business earned a profit before tax of US$160,942. The transaction places a total enterprise value on ESDS of US$603,721 of which US$100,000 is debt. Total Assets for ESDS at 31 December 2007 were US$549,807. Consideration payable under the transaction is US$246,823 to be settled in cash. 

Clearworld Energy ('CWE') was a 29% shareholder in ESDS prior to the acquisition and CWE is currently a Camco shareholder. CWE's shareholders include Michael Ashburn who is also non executive Chairman of Camco China. As a result, the acquisition of ESDS is regarded as a related party transaction for the purposes of the AIM Rules. In addition to the payment for minority equity interests Camco will assume the liabilities of ESDS. The material liabilities are loans totalling US$100,000. Of this amount US$36,250 is a loan from CWE which will be repaid to CWE by 31 December 2008.

The Directors of Camco consider, having consulted with KBC Peel Hunt Ltd in its capacity as the Company's nominated adviser, that the terms of the acquisition of CWEV are fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries:

The Camco Group	[phone]
Jeff Kenna, Chief Executive Officer
Scott McGregor, Chief Financial Officer
KBC Peel Hunt Ltd (Nominated Adviser and Broker)	[phone]
Jonathan Marren
David Anderson
Gavin Anderson	[phone]
Ken Cronin
Kate Hill
Janine Brewis
Daniela Stawinoga

Notes to editors:

About Camco

The Camco Group is a leading climate change business in the growing carbon and sustainable energy markets. We offer a full range of carbon-related services to public and private organisations worldwide. The Group has a 20-year track record and manages one of the world's largest carbon credit portfolios.

The Group consists of three business segments:

The Camco carbon assets business is a leading project developer with one of the world's largest carbon credit portfolios. We partner with companies to identify, develop and manage projects that reduce greenhouse gas emissions, and then arrange the sale and delivery of carbon credits to international compliance buyers and into the voluntary market.

The consulting practice consists of Bradshaw, ECCM, ESD and ESD Sinosphere. It combines specialist technical, strategic and financial expertise and experience accrued over two decades to deliver a sustainable low carbon society. We are positioned to work with our clients to turn climate change liabilities into economic, social and environmental assets. 

Camco Ventures works with project and technology developers, early stage businesses and investor Groups to commercialise climate change mitigation technologies, projects and services. Part of this business is the Camco asset management vehicle.

 

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