Completion of EAG Divestment

Scirocco Energy PLC

31 January 2024

 

31 January 2024

Scirocco Energy plc

("Scirocco" or "the Company")

Completion of EAG Divestment

Scirocco Energy plc (AIM: SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets, today announces an update on the divestment of its interest in Energy Acquisitions Group Limited ("EAG") (the "Transaction").

Following receipt of the waiver from AIB, Scirocco is pleased to announce the successful completion of the sale of its interest and investment in EAG, in which it held 50% interest, for a gross enterprise value of £2.6 million before adjustments, plus a contingent consideration of up to a further £150,000, to private equity firm OrbeNovo Capital. This transaction, initially disclosed on 21 December 2023, and detailed in the circular published on 22 December 2023, received approval from shareholders at a General Meeting convened on 10 January 2024.

Highlights

·    The Transaction will result in a firm net consideration of c. £702k payable to Scirocco, which is expected to be received today, will be retained by the Company.

·    Contingent consideration of up to £150k, payable in tranches, if and when EAG completes the acquisition of certain target anaerobic digestion sites which have been developed in EAG's deal pipeline within the last twelve months.

The Board continues its review of a range of potential alternative options available to it by which it is able to deliver value to Shareholders, which may include the distribution of available cash, further investments in line with its investing policy and/or the deployment of the proceeds in pursuit of a reverse takeover transaction. Linked to this is the receipt of the first contingent payment of $3 million pursuant to the disposal of the Company's interest in the Ruvuma asset, which is still expected to be received later in Q1 2024.

Commenting on the update, Alastair Ferguson, Chairman of Scirocco, said:

"I am pleased to announce the completion of the divestment of our interests in EAG. The Board is presently progressing its review of a range of potential options available to deliver value to shareholders and these funds will provide additional optionality to underpin that review process. The Company is in a strong position in terms of having a clean structure, zero debt and a strong and growing cash position. We look forward to providing further updates on that review process as appropriate."

For further information:

Scirocco Energy plc Tom Reynolds, CEO	[phone]
Strand Hanson Limited, Nominated Adviser Ritchie Balmer / James Spinney / Robert Collins	[phone]
WH Ireland Limited, Broker Harry Ansell / Katy Mitchell	[phone]
Buchanan, Financial PR Ben Romney / Barry Archer / George Pope	[phone]

 

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