Noble Group ditches stakes in 4 UK power firms for $33m

There's an additional consideration for up to $130m.

Noble Group announced that its 75%- owned subsidiary, Watt Power, has disposed of its entire 100% equity interests in each of the four power development companies, all incorporated in the United Kingdom, to Drax Developments Limited, a subsidiary of Drax Group plc, for an initial consideration of approximately US$23.5m(S$33m) with additional consideration payable dependent on the clearing price in future UK capacity market auctions of up to a maximum of approximately US$91.6m ($130m).

Shareholders should note that the quantum of the contingent consideration payable will depend on the outcome of the UK capacity market auctions during the period 2016 to 2020 and the actual quantum paid may be significantly lower than the stated maximum quantum.

The disposal will also result in outstanding bid and other security of approximately US$7.2 million (S$10.21m”) being returned to Watt Power: Abergelli Power Limited (APL);Hirwaun Power Limited (HPL); Millbrook Power Limited (MPL); and Progress Power Limited (PPL).

The consideration will be satisfied in cash and was arrived at following arm’s length negotiations on a willing-buyer, willing-seller basis, taking into account, inter alia, the relevant market and commercial considerations.

Upon completion of the Disposal, APL, HPL, MPL and PPL had ceased to be whollyowned subsidiaries of Watt Power.

Based on the latest unaudited consolidated financial statements of the Company for the period ended 30 September 2016, the book value attributable to the sale shares and the net tangible asset value attributable to the sale shares of each of APL, HPL, MPL and PPL was approximately US$0.8m ($1.13m), US$3m (S$4.26m), US$0.8m ($1.13m) and US$3.0m ($4.26m), respectively.