Camco Clean Energy has reached a conditional agreement to sell its US biogas assets for an initial consideration of US$4.6 million.
The amount could reach up to an additional $1m of deferred consideration depending on the fulfilment of certain conditions. Under the terms of the agreement, the company has conditionally agreed to sell its entire interests in AG Power Jerome, which owns the Jerome biogas facility and AG Power, which owns the Twin Falls facility, to Clean Power Holdings, a developer of anaerobic digestion biogas assets in the US for initial consideration of US$18.9 million less associated debt of approximately US$14.3 million.
Initial consideration, after taking account of the related debt, is US$4.6 million of which US$2 million will be settled in cash on completion and the remaining $2.6 million to be settled in cash within 12 months from the date of completion.
On 30 September, the company announced that following completion of the roll-in of the minority interests in Renewable Energy Dynamics Holdings, its RedT Energy Storage business would become the primary focus for Camco.
It also announced that it would continue with its Africa Fund Advisory business and was continuing to progress the ongoing strategic review of its remaining US activities. Through the strategic review, Camco’s board has concluded that it is in the best interests of the company to pursue the transaction so as to provide additional resource to enable further investment in the RedT Energy Storage.
Under the terms of the agreement, the company has conditionally agreed to sell its entire interests in AG Power Jerome, which owns the Jerome biogas facility and AG Power, which owns the Twin Falls facility, to Clean Power Holdings, a developer of anaerobic digestion biogas assets in the US for initial consideration of US$18.9 million less associated debt of approximately US$14.3 million. Initial consideration, after taking account of the related debt, is US$4.6 million of which $2 million will be settled in cash on completion and the remaining $2.6 million to be settled in cash within 12 months from the date of completion.
