Sale of Jenbacher Gas Engines

RNS Number : 6856T

Rurelec PLC

22 November 2013

 



22 November 2013                                                          

Rurelec PLC

("Rurelec" or "the Company")

Sale of Jenbacher Gas Engines

Rurelec PLC (AIM: RUR), the developer, owner and operator of power generation capacity internationally, today announces that its wholly owned subsidiary, Independent Power Corporation PLC ("IPC"), has entered into a contract to sell its two high efficiency Jenbacher 616 gas engines of 2 MW capacity each (the "Jenbacher Engines") for a total purchase price of £1.2 million.  The consideration will be satisfied by offsetting approximately £1 million against the debt of £4.06 million still owed by Rurelec arising from the conditional purchase of IPSA's two Siemens Westinghouse 701 DU (previously referred to as TurboCare (ex FiatAvio) TG50D5) gas turbines announced on 10 June 2013. The balance of £0.2 million will be paid in cash when the engines enter into commercial operations in South Africa, which is expected to be in March 2014. The two Jenbacher Engines are currently in storage in Southampton.

Commenting, Peter Earl, CEO of Rurelec said: "I am pleased that we have sold IPC's two remaining Jenbacher gas engines as we focus on our portfolio of large power plant developments in Chile and Peru."

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For further information please contact:

Peter Earl, CEO, Rurelec PLC Ana Ribeiro, Head of Communications	Tel: [phone]
Paul Shackleton, Daniel Stewart & Company Plc	Tel: [phone]
Guy Peters, XCAP Securities	Tel: [phone]

 

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