Good Energy to acquire Kent-based solar and storage business
Renewable energy group Good Energy has entered into a conditional binding agreement to acquire Kent-based solar and storage outfit JPS Renewable Energy for up to £13.75m.
Good Energy will make an initial consideration of £7.0m for JPS, and its wholly-owned subsidiary, Trust Solar Wholesale, with £3.7m to be paid in cash upon completion and £3.3m to be satisfied via the allotment of 1.32m ordinary shares.
The placing price represented a discount of 9.4% to the stock's mid-market closing price of 276.0p on 9 February
A further deferred consideration of up to £6.75m, payable in cash over a two-year period, was said to be subject to certain performance conditions.
The AIM-listed group stated the acquisition would strengthen its service offering and accelerate its energy services growth strategy in targeting higher margin, growth markets with lower working capital requirements.
Good Energy also noted that the addition of JPS to the group was also expected to be earnings accretive in the current year.
As of 1025 GMT, Good Energy shares were down 5.21% at 261.63p.
Reporting by Iain Gilbert at Sharecast.com
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