Abbot Group plc has agreed to dispose of its 50 per cent interest in Powergen Renewables Holdings Ltd to Powergen UK plc for a total consideration of £57.5 million, including the repayment of debt, payable in cash on completion. The proceeds will be used to repay borrowings.
Powergen Renewables is said to be one of the largest developers and operators of wind generated electricity farms in the United Kingdom and Ireland, both onshore and offshore.
The consideration of £57.5 million represents a profit on the disposal of £46. 1 million, taking into account the costs of the transaction. The current book value of Abbot’s total investment in Powergen Renewables is £10.5 million, including debt of £5.3 million.
Following the disposal, and based on its debt position at the time of its interim results at 30 June 2002, Abbot’s total borrowings would be reduced to £38.2 million, representing pro forma gearing of 26 per cent.
Completion of the acquisition, which will immediately enhance earnings, is expected to take place today, Friday 18 October.