Trading Emissions sells last remaining solar operating subsidiary

Trading Emissions announced the sale of its remaining solar operating subsidiary, Solar Energy Italia 1 (SEI1), on Wednesday.

The AIM-traded company’s ultimately wholly-owned subsidiary, TEP Solar Holdings, has entered into a quota purchase agreement with NextPower II Italia in respect of the sale of its entire interest in SEI1, comprising an operating ground-mounted solar photovoltaic plant located in Ragusa, Sicily.

It said the net proceeds from the sale of SEI1, after allowing for transaction and other costs, were estimated to be €7.97m.

Under the terms of the quota purchase agreement, closing and receipt of the sales proceeds remained subject to the fulfillment of various conditions precedent, which the board described as usual for the type of transaction.

Those were expected no later than 31 March.

“The conditions precedent include receipt of third party approval of change of control of SEI1 and other waivers, the timing and nature of which are outside the control of both TEPS and NextPower,” the Trading Emissions board explained in its statement.

Under certain specific circumstances, the gross sales proceeds could increase by an additional €0.75m.

“The quota purchase agreement includes terms and conditions customary for a transaction of this type, including warranties and an indemnity in favour of NextPower.”

As it had previously disclosed, following completion of the sale of SEI1 the board expected to convene a shareholder meeting to approve a cash distribution and cancel the company's admission to trading on AIM.