Business
Acquisition of stake in Engsolve Limited
Acquisition of stake in Engsolve Limited.
About this update from Powerhouse Energy Group Plc
[{"type":"text","content":"\n \n Powerhouse Energy Group plc\n (\"Powerhouse\" or the \"Company\")\n 12 August 2021\n Acquisition of 48% stake in Engsolve Limited\n Powerhouse Energy Group plc (AIM: PHE), the UK technology company commercialising hydrogen production from plastic, announces the acquisition by Powerhouse of 48% of the share capital of Engsolve Limited (“Engsolve”), the engineering consultancy (the “Acquisition”). The shares have been bought for a consideration of £99,990 in cash from Engsolve shareholders.\n Reasons for the Acquisition\n Paul Emmitt, the Company’s Chief Technology Officer, is also the managing director and founder of Engsolve. Powerhouse has worked very closely with Engsolve and Paul for the last four years. The acquisition is intended to maintain Engsolve’s continued support of the Company’s projects and developments and will ensure that Engsolve’s expertise remains available to Powerhouse in future.\n Engsolve is a private company based in Bridgend in Wales. As an engineering solutions company, Engsolve has significant experience in undertaking engineering design and support, cost estimating and control, project management and safety risk assessments across a range of industries including energy from waste, renewables and green energy. \n It made a profit after tax of approximately £137,000 in the year to 31 March 2021 on a turnover of approximately £840,000.\n Related Party Transaction\n Engsolve is owned by its three directors, Pauline McCarthy, Paul Emmitt and Richard Riddell. Ms McCarthy is the wife of David Ryan, who was a director of Powerhouse within 12 months preceding the Acquisition. Paul Emmitt is the chief technical officer of Powerhouse. Ms McCarthy is considered to be a related party under the AIM Rules for Companies and the transaction with her is a related party transaction under the Aim Rules for Companies. Ms McCarthy is selling her entire holding in Engsolve of 35 per cent to Powerhouse. Mr Emmitt will retain 50% of the shares in Engsolve pursuant to the Acquisition.\n The Directors of the Company, having consulted with WH Ireland, the Company’s Nominated Adviser, consider the terms of the related party transaction to be fair and reasonable insofar as shareholders are concerned.\n Tim Yeo, Executive Chairman of Powerhouse, said: “We are delighted to have acquired 48% of the share cap...