LONDON (Alliance News) - Power generation company Rurelec PLC Friday confirmed that it will sell two Jenbacher 616 gas engines to IPSA Group PLC for GBP1.2 million, made up of GBP0.2 million in cash and a GBP1 million payment against a GBP4.06 million debt it owes IPSA after Rurelec bought gas turbines from the company in June.
IPSA said Thursday that it had entered into a contract to buy two high efficiency Jenbacher 616 gas engines of 2 megawatt capacity each from Independent Power Corporation PLC, a subsidiary of Rurelec. It said it will put the engines into use at its site in Newcastle.
In its statement Friday, Rurelec said the sale was the last two of Independent Power Corporation's Jenbacher gas engines, allowing it to focus on large power plant developments in Chile and Peru.
Rurelec shares were down 1.9% at 13 pence Friday morning, while IPSA was down 1.5% at 3.2 pence.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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