(Sharecast News) - British power generation firm ContourGlobal has sold its Brazil hydroelectric generation business to Patria Investments for BRL 1.73bn (£229.68m) as part of an effort to create "compelling value" for shareholders.
ContourGlobal said the sale, which includes the assumption of net debt and other customary adjustments, would see it receive net proceeds of approximately $110.0m when the transaction closes in the second quarter.
The FTSE 250-listed firm added it intends to use the expected net proceeds to either re-invest in "attractive new growth opportunities" in low carbon power generation or return capital to shareholders.
Chief executive Joseph Brandt said: "This sale is consistent with our drive to unlock value from undervalued assets in our portfolio and deliver further attractive risk-adjusted returns for our shareholders, and demonstrates that value differential for our assets in the public and private markets."
As of 0825 GMT, ContourGlobal shares were up 0.75% at 188.20p.
26 Nov 2020 16:05