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LONDON (Alliance News) - Active Energy Group PLC Thursday said that it is performing well despite the political situation in Ukraine, and said it has canceled the deferred consideration part of its GBP3.8 million takeover of Nikofeso Holdings Ltd because the acquired company had not met its performance expectations.
The European supplier of woodchip and timber products for green energy biomass power generation agreed to buy Nikofeso in June last year. The deal was made up of initial and deferred share and warrant provisions, with the deferred part subject to certain determined performance criteria.
The company said Nikofeso had not performed in line with its expectations and on Wednesday, the entire deferred consideration of 62.5 million shares and 12.5 million warrants was cancelled, with shares held in escrow transferred into its treasury and warrants cancelled.
Active Energy also said it is currently trading in line with its forecasts after relocating certain operations to limit its reliance on Ukraine.
The company said its two new supply routes from Spain and Montenegro for wood chip are proving their ability to meet its logistical demands and it is confident that it can fulfil the contractual requirements of its Italian clients from these sources alone.
It said that Spain delivered a further shipment in late April while Montenegro remains on track to complete its two remaining trial shipments before the end of May.
The company also said that while the political situation remains unstable in Ukraine, it still expects to maintain a reasonable rate of deliveries to Turkey through the Black Sea.
Active Energy shares were up 1.5% to 1.75 pence Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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