Business
Acquisition of Interest in Sindh Carbon Energy
Acquisition of Interest in Sindh Carbon Energy.
About this update from Oracle Power Plc
[{"type":"text","content":"\n \nRNS Number : 6771B Oracle Power PLC 12 January 2018 \n\n \n \n \n \n \n \n \n12 January 2018\nOracle Power PLC\n(\"Oracle\" or \"the Company\")\n \nAcquisition of Remaining Interest in Sindh Carbon Energy Limited\n \n \nOracle Power PLC (AIM:ORCP), the UK energy developer of a combined lignite coal mine and mine mouth power plant located in the south-eastern Sindh Province of Pakistan, is pleased to announce that it has reached an agreement to acquire the remaining shares outstanding in Sindh Carbon Energy Limited (\"SCEL\"), that it did not already own. SCEL is the holder of the mining lease under development. \n \nOracle has reached an agreement to acquire the remaining 199,999 shares in SCEL which are not owned by Oracle from the current shareholder, Sindh Koela Limited (SKL) a private company incorporated in Pakistan, for a maximum consideration of £3.6 million. The Initial consideration of £2.2 million will be satisfied through the issuance of 95,652,174 shares in Oracle (the \"Acquisition Shares\") at 2.3p per share, being the same price as the Company's recent Equity Placing announced on 28 December 2017. If upon financial close with the previously identified and announced Chinese State-Owned Enterprises, the value of the Acquisition Shares issued to SKL is less than £3.6 million based on Oracle's share price at the time, Oracle will issue further shares at the prevailing market price to SKL to make good any shortfall. \n \nUpon completion of the acquisition, Oracle will have 100% ownership of the Pakistani operating companies for both mining (through SCEL) and power (through Thar Electricity (Private) Ltd). This was one of the key outstanding requirements of the Company's potential strategic partners, with whom the Company has entered into a Memorandum of Understanding for the funding and development of the US$1.6bn project, as announced on 21 November 2017.\n \nIn the year ended 31st December 2016, SCEL had gross and net assets of approximately £1,480,956 and £603,408 respectively and made a loss of £3,536. Oracle currently has a loan receivable from SKL of approximately £15,000, and as part of Oracle's acquisition of the balancing stake in SCEL from SKL, the parties have agreed to waive the loan in full. \n \nIt should b...