Last checked at 25 Jun 2008 07:00
Rurelec PLC
("Rurelec" or "the Company")
Further re: Acquisition
Further to the announcement made on 13 June 2008 Rurelec PLC (AIM:RUR), announces that it has now completed the acquisition of the 50 per cent. of Energía del Sur ("EdS") which it does not already own and that the placing of 12,500,000 ordinary shares at 65 pence each ('the Placing') is now unconditional. The Placing raises approximately £7.8 million net of expenses. Application has been made for the ordinary shares to be admitted to trading on AIM today.
EdS, now a wholly-owned subsidiary of Rurelec, is the owner of an existing 76 MW gas fired open cycle power plant in Patagonia, Argentina and has nearly completed expansion of the plant by adding 60 MW of combined cycle steam turbine capacity. Furthermore, the plant has been accepted for registration under the Kyoto Protocol of the United Nations Framework Agreement on Climate Change, with an approved annual 148,018 certified emissions reductions certificates ("CERs"), also known as "carbon credits". EdS had agreed outline terms for the forward sale of these CERs at around US $20 per CER producing some US $3 million of income in a full year from the CER sales.
While the number of shares in issue has increased by 17 per cent., following the Placing, Rurelec's total net ownership of power plant capacity, measured in megawatts, will have increased by 24 per cent. when the new capacity comes online.
As a result of the Placing, the Company now has 85,788,775 ordinary shares in issue which figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, Rurelec PLC under the FSA's Disclosure and Transparency Rules.
For further information please contact:
Peter Earl, CEO, Rurelec PLC 020 7793 5610
Paul Shackleton/Stewart Dick, Daniel Stewart 020 7776 6550
Ana Ribeiro, Park Green Communications 0207 851 7480