SIG PLC
SIG plc
("SIG" or "the Group")
Disposal of interest in Ice Energy Technologies Limited
SIG plc, a leading distributor of specialist building products in Europe, today announces that it has sold its 50.6% stake in Ice Energy Technologies Limited ("Ice Energy") to the existing Ice Energy management team of Andrew Sheldon and Andrew Hillier.
Ice Energy is a renewable energy solutions provider which specialises in ground and air source heat pumps. This disposal follows challenging market conditions resulting from delays to, and the subsequent slow uptake of, the UK government's Renewable Heat Incentive (RHI) scheme.
The consideration for the divestment comprises a nominal initial cash payment of £1 together with an earn-out of up to £5m dependent on the performance of Ice Energy over the period to 31 March 2019. In addition SIG is also providing a £0.85m interest bearing loan to Ice Energy which is repayable in 5 years.
SIG expects to incur an associated exceptional charge in 2014 of c.£8m relating to the divestment, of which c.£1m is cash. £3.3m of this charge has already been recognised in the Group's Half Year results.
This announcement is being made pursuant to LR 11.1.10 R given the related party status of Andrew Sheldon and Andrew Hillier.
EnquiriesStuart Mitchell, Chief Executive Doug Robertson, Finance Director Simon Bielecki, Head of Investor Relations | SIG plc | 0114 285 6300 07515 794359 |
Richard Mountain / Nick Hasell | FTI Consulting | 020 3727 1340 |
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