Alkane Energy completes Greenpark deal27 April 2012
Mansfield-based Alkane Energy's acquisition of Greenpark Energy for almost £6m has now completed.
All conditions precedent of the conditional deal have now been satisfied, the board of the gas to power producer told the Stock Exchange this morning (27 April).
Following the acquisition, Alkane is now the largest operator of coal mine methane (CMM) in the UK and has a "sizable presence" in power response operations, with 70MW of installed generating capacity and an electrical grid capacity of 92MW across 19 sites, the company added.
Chief executive Neil O'Brien said: "This acquisition is a transformational deal for the company and gives us greater critical mass, confirms Alkane's position as a leader in the independent gas to power sector, and provides a strong platform for future growth."
The deal has been financed by the extension and addition of banking facilities provided by Lloyds TSB Bank, totalling facilities of up to £9.5m; the issue of a £2m convertible loan note; and the issue of £250,000 in Alkane ordinary shares of 0.5p each.
Alkane paid £4.76m in cash on completion of the transaction, with further cash payments of up to £725,000 made subject to release of an escrow retention and further contingent and deferred contractual arrangements.