Sheffield's SIG diposes of its 50% stake in renewable technology firm
Sheffield-based SIG plc, a distributor of building products in Europe, has announced that it has sold its 50.6% stake in Ice Energy Technologies Ltd to its management team.
Ice Energy, managed by Andrew Sheldon and Andrew Hillier, is a renewable energy solutions provider which specialises in ground and air source heat pumps.
According to SIG this disposal follows challenging market conditions resulting from delays to, and the subsequent slow uptake of, the UK government’s Renewable Heat Incentive (RHI) scheme.
The consideration for the divestment comprises a nominal initial cash payment of £1 together with an earn-out of up to £5 million dependent on the performance of Ice Energy over the period to 31 March 2019.
In addition SIG is also providing a £850k interest bearing loan to Ice Energy which is repayable in 5 years.
SIG expects to incur an associated exceptional charge in 2014 of £8 million relating to the divestment, of which £1 million is cash. £3.3 million of this charge has already been recognised in the Group’s Half Year results.
This was posted in Bdaily's Members' News section by Clare Burnett.