Disposal of interest in Camco South East Asia

RNS Number : 0472E

Camco Clean Energy PLC

07 May 2013

 

Camco Clean Energy plc

Disposal of interest in Camco South East Asia Limited

Camco Clean Energy plc ("Camco Clean Energy" or the "Company") is pleased to announce that it has agreed to dispose of its entire 60.1% interest in Camco South East Asia Limited ("CSEAL") for $6.01m (£3.87m) to Payar Investments Ltd (a wholly-owned subsidiary of Khazanah Nasional Berhad ("Khazanah")).

CSEAL was set up in September 2010 as a joint venture between Camco Clean Energy and Khazanah to invest in the emissions to energy market in South East Asia, as well as carbon development and advisory services. At the time, the Company invested $5.15m into CSEAL.

Since this date, CSEAL has been developing a pipeline of projects to generate clean energy using local regulatory incentives as well as expanding its carbon development business. As part of this strategy, it acquired a 2MW biogas development project in August 2012 to recover biogas containing methane from palm oil mill effluent. Construction of the project is expected to be completed shortly.

As part of the Disposal, Camco Clean Energy has agreed that it will enter into a Collaboration Agreement with CSEAL. As part of this agreement Scott McGregor will remain as a Director of CSEAL to provide on-going strategic advice and support with regard to the development of the South East Asian business. Camco Clean Energy will also be available to provide technical input into new clean energy projects being developed and access to carbon commercialisation skills.

The proceeds from the Disposal will be used to invest in the Company's clean energy project development business in the US and Africa and for general working capital purposes.

Scott McGregor, CEO of Camco Clean Energy said:

"The sale of CSEAL allows Camco Clean Energy to focus on the growth of its clean energy development business in the US and Africa. We look forward to continuing a co-operative relationship with our South East Asian business partner CSEAL."

On inception in September 2010, CSEAL was capitalised with $30.0m, made up of $14.7m as equity and $10.15m as a convertible bond from Khazanah and $5.15m from Camco Clean Energy as equity investment. Camco Clean Energy's initial holding was 60.1% and Khazanah's initial holding was 39.9%, both of which have not altered since inception.

As at the date of Camco Clean Energy's last set of interim results (being 30 June 2012), the carrying value of CSEAL was €9.7m (£7.8m). The share of loss as at the date of the last published set of audited accounts (being 31 December 2011) was €0.6m (£0.5m). The consideration of $6.01m will be settled in cash in full.

Related party transaction

The Disposal constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules ("Related Party Transactions"). The Directors consider, having consulted with N+1 Singer Limited, the Company's nominated adviser, that the terms of the Disposal are fair and reasonable insofar as Camco Clean Energy's shareholders are concerned.

Enquiries:

Camco Clean Energy plc	[phone]
Scott McGregor
Jonathan Marren
N+1 Singer (Nominated Adviser and Broker)	[phone]
Andrew Craig
Ben Wright

About Camco Clean Energy

Camco Clean Energy plc (AIM: CCE) is an experienced project developer working to develop, construct and operate projects that contribute to building a sustainable future.

With more than 20 years of successful project delivery we help clients in Asia, North America, Africa and Europe to implement clean energy and emission reduction solutions, reducing costs and maximising financial and environmental benefits. We have an outstanding track record in technical delivery and commercial expertise, working with local industry, multinational companies, governments and regulatory bodies.

Camco Clean Energy has created one of the largest emission reductions portfolios and has structured ground breaking and innovative arrangements for the sale and delivery of emission reductions to compliance and voluntary buyers.

About Khazanah Nasional Berhad

Khazanah is the strategic investment fund of the Government of Malaysia entrusted to hold and manage the commercial assets of the Government and to undertake strategic investments. Khazanah is involved in various sectors such as power, telecommunications, banking, healthcare, airport management, infrastructure, leisure & tourism, property development, broadcasting, investment holding, and technology. Some of the key listed companies in Khazanah's investment portfolio include Telekom Malaysia Bhd, Tenaga Nasional Bhd, CIMB Group, Axiata Group Bhd, IHH Healthcare Bhd, Malaysia Airports Holdings Bhd and UEM Land Holdings Bhd.

 

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