Renewable Energy Holdings has completed the disposal of its non-core operations with the sale of its landfill gas project at Bryn Posteg in Wales.
REH will focus on its European wind farm portfolio in Poland and Wales. The additional cash will come in handy to finance the development of the portfolio.
Sundorne Products (Llanidloes) is paying up to £2.75m for Bryn Posteg - £2m will be paid by the end of March 2010. Bryn Posteg had net assets of £1.8m at the end of June 2009. The site has an electrical output of 1MW. If revenues from the site exceed the current level then £750,000 will be paid, or £250,000 if the additional revenue is not achieved by the end of January 2012.
At 21p a share, down 2.25p on the announcement, valuing REH at £14.6m.
Last year, REH sold its CETO wave power technology to ASX-listed Carnegie Wave Energy in return for 31% of the holding company. Carnegie has obtained a licence for a wave energy site in Perth, Australia. This will be the first commercial scale project.
In October 2009, Stand Hanson became nominated adviser and Novus Capital Markets broker to REH - replacing Ambrian.
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