£30m Energy Management disposal to unlock growth potential
As trailed in November, eEnergy has now agreed the disposal of its Energy Management business for an initial consideration of £29m, plus earnout (estimated range of £8m to £10m subject to performance). This is a transformative deal, which will eliminate all debt (previously a constraint to growth and a drag on sentiment) and leave the Group with net cash in excess of £15m to reinvest in the high growth Energy Services division.We note that the initial cash consideration (£25m) is similar to eEnergy’s current market cap (£26m at Friday’s close). We reiterate our 13p Fair Value estimate and will publish new forecasts post completion (General Meeting on 7th Feb).
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