LONDON (Alliance News) - Pressure Technologies PLC on Tuesday said it has now completed the sale of its wholly-owned subsidiary, PT Biogas Holdings Ltd, to Creation Capital Corp for GBP11.1 million.
PT Biogas - which trades as Greenlane Biogas - was a part of Pressure Tech's Alternative Energy division.
"The completion of this sale concludes the board's process to realise the potential of the Greenlane Biogas business in the expanding market for renewable natural gas," explained Chief Financial Officer Joanna Allen. "I would like to thank the Greenlane team for their hard work and wish them and the new leadership team all the best for their future as Greenlane Renewables Inc."
The engineering company said the consideration price was reduced to GBP10.1 million following working capital and debtlike adjustments. Creation Capital will satisfy the total payment with GBP2.0 million in cash and GBP2.0 million in Greenlane Renewables shares, representing a 21% holding.
"We will remain a supportive shareholder and anticipate retaining our holding for the medium term," added Allen.
In addition, Pressure Tech will secure GBP6.1 million by way of a promissory note, which will mature 48 months from completion of the sale and bear interest at the rate of 7% per annum.
Pressure Tech shares were trading 3.7% lower on Tuesday at 105.00 pence each.
Pressure Tech (PRES)