Sale of Hydro

RNS Number : 3143T

Rurelec PLC

17 July 2015

 



17 July 2015

RURELEC PLC

("Rurelec" or "the Company")

Sale of Hydro in Peru

The Company today announces that it has completed the sale of Empresa de Generación Eléctrica Canchayllo S.A.C ("EGECSAC"), a subsidiary of the Company in Peru to Energías Renovables de los Andes S.A.C. for a purchase price of US$6.8 million. The purchaser has also assumed the responsibility for repayment of the indebtedness in excess of US$7.5 million to the Inter-American Investment Corporation, the lender to the project.

EGECSAC owns a 5.26 MW run of the river hydro power plant in Junin province of Peru and was 93 per cent owned by Cascade Hydro Limited, a wholly owned subsidiary of Rurelec. 

A further sum of up to approximately US$1 million subject to adjustment will be repaid by the purchaser to Cascade Hydro Limited by way of reimbursement of amounts advanced towards the completion of the project in due course.

The net proceeds of the sale are US$6.4 million which will be applied to meet obligations of Cascade Hydro Limited and of the Company. 

For further information please contact:

Rurelec PLC	W H Ireland	CNC Communications
Colin Emson, Chairman and Non-Executive Director	Paul Shackleton and James Bavister	Ana Ribeiro Director
Tel: [phone]	Tel: [phone]	Tel: [phone]

 

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