In the UK, Esken Green Energy Limited, has agreed the sale of its investment in Mersey Bioenergy Holdings Limited and its wholly owned subsidiary (together “Mersey Bioenergy”) to UK Waste Resources and Energy Investments L.P., a member of the Bioenergy Infrastructure Group, for a total cash consideration of £9 million.
Mersey Bioenergy owns and operates a combined heat and power plant in Widnes and the Disposal is part of Esken’s ongoing strategy to dispose of non-core assets.
Esken’s investment in Mersey Bioenergy comprised a 39.6% shareholding and £7.3 million of unsecured 13.5% loan notes with a ten-year term ending in November 2024. The shareholding and loan notes had been fully written down by Esken, with a £nil net book value as at August 31, 2022, and the investment in Mersey Bioenergy did not contribute to either profit or loss for the Group in the year ended February 28, 2022.
The consideration of £9 million will be paid in cash on completion, and the cash will be used for repayment of debt and working capital purposes. Completion will take place once certain conditions have been satisfied, including conditions which relate to the refinancing of Mersey Bioenergy by Bioenergy Infrastructure Group and the capitalisation of all existing loan notes issued by Mersey Bioenergy Holdings Limited. Completion is expected to take place before the end of August 2023.
This Disposal does not impact the Mersey Bioenergy Fuel Supply Agreement with Esken Renewables, which expires July 2035.
