ISOTeam has, on Nov 5, entered into a purchase and sales agreement to dispose of its entire interest in Sunseap Group, representing approximately 1.18% of shares, for a proposed sale consideration of $12.2 million.
The stake is being sold to global renewable energy player EDP Renováveis, S.A. (EDPR). EDPR, a company incorporated in Spain and listed on Euronext Lisbon, is acquiring majority control of Sunseap. On Nov 3, Sunseap had announced EDPR has bought a substantial stake in a deal that values the company at $1.1 billion.
In a press release announcing the deal, ISOTeam states it had invested $5 million for its stake in Sunseap in 2017, comprising 39,475 Series C convertible preference shares and 5,611 ordinary shares.
The sale will result in a gain of $4.2 million over the book value of the sale shares, which stood at $8 million as at June 30, and a gain of $7.2 million over the initial cost of investment of the sale shares of $5 million in 2017.
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“We believe that the proposed disposal is in the best interest of our shareholders as it will improve the liquidity of the Group and allow us to reallocate our resources to improve and optimise the utilisation of assets as well as free up funds that can be applied towards the general working capital requirements of the Group and the expansion of our renewable business,” says Anothony Koh, executive director and CEO of ISOTeam.
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“We have enjoyed a long and synergistic relationship as one of Sunseap’s major installation partners since 2015. Having worked on multiple projects together, they know our track record and recognise the quality of our work. ISOTeam’s focus on the renewable energy business remains intact and we believe there will be opportunities to work together on more projects in the future as Singapore ramps up its SolarNova programme,” he adds.
The transaction is expected to complete in 1Q2022.
Shares in ISOTeam closed up 0.9 cents or 6.98% higher at 13.8 cents on Nov 3.
Photo: Albert Chua/The Edge Singapore
