(Alliance News) - SQN Asset Finance Income Fund Ltd on Monday said it is undertaking a review of the models and projections supporting the carrying values of its anaerobic digestion plant investments.
An anaerobic digestion plant converts food and crop waste into biogas, which in turn can be used to generate heat and electricity.
SQN said it is invested in a total of 11 anaerobic digestion plants. Six of them are in the ramp-up phase, with three having not yet reached targeted operational capacity.
As a result, the company said it intends to appoint a third-party valuer to provide an independent assessment of the valuation of these assets. The six assets, in aggregate, had a valuation of GBP127.7 million as at the end of November 2019, SQN said.
The company also noted that this assessment will results in delays in publication of its net asset value per share. The NAV per C share is expected to be announced as planned later this week, as the C share portfolio has no exposure to anaerobic digestion assets.
"The investment manager will continue to work with the asset operators to achieve optimisation of each of the anaerobic digestion plants with the intention of monetising these assets in due course, together with the five anaerobic digestion plants operating in-line with expectations," SQN said in its statement Monday.
SQN shares were trading 16% lower in London at 70.97 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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