Acquisition completed27 Apr 2012 08:15
"The Board of Alkane Energy plc, the independent gas to power producer, is pleased to announce that by 26 April 2012, all conditions precedent of the conditional acquisition (the "Acquisition") of Greenpark Energy Limited ("Greenpark") were satisfied and the Acquisition has now completed.
Following the Acquisition, Alkane is now the largest operator of Coal Mine Methane ("CMM") in the UK and has a sizable presence in power response operations, with, in total 70MW of installed generating capacity and an electrical grid capacity of 92MW across 19 sites.
Alkane has further extended its position of having the UK's leading portfolio of CMM licences, which includes a further seven CMM gas exploration licences from Greenpark, along with sites currently under investigation which will secure the project pipeline over the short to medium term.
Acquisition Details
The Acquisition has been financed by the extension and addition of banking facilities provided by Lloyds TSB Bank PLC, totalling facilities of up to £9.5 million, the issue of a £2.0 million convertible loan note, and the issue of £250,000 in Alkane ordinary shares of 0.5 pence each in the capital of the Company ("Consideration Shares"). The cash consideration paid on completion was £4.76 million in cash with further cash payments of up to £725,000 made subject to release of an escrow retention and further contingent and deferred contractual arrangements detailed under the Acquisition agreement (the "Acquisition Agreement"). Further details of the Acquisition and Acquisition Agreement are contained in the announcement of 2 February 2012.
Consideration Shares
The number of Consideration Shares issued was 1,162,237, based on the 30 day, volume weighted average share price of 21.51 pence per Alkane ordinary share immediately prior to Completion calculated by reference to the payment value of £250,000. The Consideration Shares have now been issued and allotted and application will be made for admission of the Consideration Shares to trading on AIM. It is expected that dealings in the Consideration Shares will commence at 8.00 a.m. on 3 May 2012.
Following the admission of the Consideration Shares, the issued share capital of the Company will be 100,863,085 ordinary shares.
Neil O'Brien, Chief Executive Officer, commented on the Acquisition:
"This acquisition is a transformational deal for the Company and gives us greater critical mass, confirms Alkane's position as a leader in the independent gas to power sector, and provides a strong platform for future growth.""
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