EQTEC agrees to sell Irish windfarm in EUR1.1mln deal

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EQTEC PLC (LON:EQT) has agreed a deal to sell Pluckanes wind farm in County Cork, Ireland for EUR1.1mln gross, with a maximum net cash consideration of EUR383,503.

In a statement, the company said the sale is in accordance with its previous decision to focus solely on being the technology partner for waste-to-value applications.

Proceeds will be used for general working capital.

READ: EQTEC to take over Deeside RDF project

The deal, struck on a debt-free/cash-free basis, will see EUR778,765 transferred by the buyer in settlement of a debt owing by the company to an Irish bank, additionally, a EUR157,468 intercompany debt is being repaid to the group by the buyer.

Some EUR170,000 of the net consideration will be deferred and held in escrow subject to Pluckanes obtaining a planning extension to existing permissions, to extend wind turbine activity.

It will also be conditional upon the transfer of the substation between the landlord and ESB Networks, and the procurement of a letter from a local authority confirming compliance with certain customary conditions.

All three conditions will need to be satisfied on or before the first anniversary of the date of planning application, for the deferred money to be paid.

Prior to the sale the Pluckanes asset was held by EQTEC’s Reforce Energy subsidiary.

Pluckanes is a single turbine operation. It earned a profit of EUR24,827 before tax in the six months ended June 30, and EUR21,684 for the year ended December 31, 2019.

EQTEC noted that, assuming full cash payment, it expects to make a profit of EUR32,882 before transaction costs.

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