Wind power projects developer Renewable Energy Holdings has sold more than half of its stake in ASX-listed Carnegie Wave Energy in order to finance its working capital requirements but the sale was at a large discount to the market price and its balance sheet value.
In April, REH said that it intended to sell all of its assets and distribute the cash to shareholders. The original plan was to sell the whole Carnegie stake to a strategic investor.
REH has sold 113.6m shares in Carnegie for A$1.14m (£746,000). The sale price of A$0.01 was A$0.025 lower than the market price. REH still owns 101.3m shares in Carnegie, which is 10% of the company. REH will distribute this shareholding to its own shareholders by the end of the year.
In 2009, REH swapped its CETO wave power technology for 232.6m shares in Carnegie.
Net assets were £10.9m at the end of 2011 but that included the Carnegie stake valued at £8.58m. Net debt was £2.25m.
REH still has a 30MW wind power project in Poland and a 81MW project in Wales.
At 10.12p a share, REH is valued at £7.05m.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2012_33.pdf
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.