The GBP2.75m is structured and payable as GBP2m payable no later than March 31, 2010; and an additional amount up to GBP750,000, payable in the event that Sundorne realises revenue in excess of the current 1MW electrical connection from the gas arising out of the landfill site (with a one-off payment of GBP250,000 if no such additional revenue is realised by January 31, 2012).
The company said that the disposal of this non-core asset is consistent with its current focus of investing in, developing and operating European wind assets. The proceeds of the disposal are intended to be used for general working capital purposes.
The audited accounts for REH for the financial year ended December 31, 2008 showed revenues and profit before tax for Bryn Posteg of GBP509,674 and GBP121,796 respectively. Bryn Posteg had unaudited net assets of circa GBP1.8m as at June 30, 2009.
Mike Proffitt, chief executive of REH, said: “The successful disposal of the Bryn Posteg landfill gas asset, along with the disposal of our CETO Wave Energy Technology in December 2009, further demonstrates REH’s commitment to focus on its European wind farm portfolio.
“With operating assets in Germany and development assets in Poland and Wales, we have a strong pipeline for growth and look forward to updating the market in due course.”
