Business
Non-core Businesses Disposal
Non-core Businesses Disposal.
About this update from Active Energy Group Plc
[{"type":"text","content":"\n RNS Number : 2110V Active Energy Group PLC 29 October 2010 \n\n29 October 2010\nAIM: AEG\nACTIVE ENERGY GROUP PLC\n(\"Active Energy\" or the \"Group\")\n \nDisposal of Non-Core Businesses\nand Directorate Change\n \nActive Energy which supplies voltage optimisation technology to reduce the energy consumption and CO₂ emissions of commercial buildings, is pleased to announce that it has agreed the disposal of its non-core businesses, Gasignition Limited (\"Gasignition\") in the UK and Derlite Co Limited (\"Derlite\") in Thailand, to Kevin Baker, currently Chief Executive of the Group.\n \nThe disposal of the two businesses, which supply gas ignition components to white goods manufacturers, is in line with the Group's stated strategy to focus on developing its presence in the voltage optimisation market, where it sees considerable growth opportunities. For the year ended 31 December 2009, total revenues for Gasignition and Derlite were £1,844,009 and the two businesses together recorded a loss before tax of £302,500. Gross assets as at 31 December 2009 to be transferred were £1,094,000. Following completion of the disposal, Active Energy expects to realise annual overhead savings of approximately £150,000. \n \nThe two businesses are being acquired for a total consideration of £545,000, comprising initial consideration of £70,000 payable in cash on completion and deferred consideration of £475,000 payable in equal annual installments over the next five years. The sale proceeds will be used to strengthen the Group's working capital. \n \nAs the current Chief Executive of the Group, Kevin Baker is considered to be a related party pursuant to the AIM Rules for Companies. As a result, the disposal is deemed to be a related party transaction pursuant to AIM Rule 13. The Board considers, having consulted with Merchant Securities Limited, the Group's Nominated Adviser, that the terms of the disposal are fair and reasonable insofar as the Group's shareholders are concerned.\n \nFollowing completion of the disposal, Kevin Baker will step down from the Board and from the Group and Philip Palmer will be appointed Executive Chairman of the Group with immediate effect. The Group will look to strengthen its Board as it grows. In particular, the Group will seek to appoint ...