ContourGlobal sells Brazil hydroelectric generation business
ContourGlobal
251.00p
16:39 19/12/22
British power generation firm ContourGlobal has sold its Brazil hydroelectric generation business to Patria Investments for BRL 1.73bn (£229.68m) as part of an effort to create "compelling value" for shareholders.
Electricity
9,979.03
17:09 24/04/24
FTSE 250
19,719.37
17:09 24/04/24
FTSE 350
4,419.71
17:09 24/04/24
FTSE All-Share
4,374.06
16:44 24/04/24
ContourGlobal said the sale, which includes the assumption of net debt and other customary adjustments, would see it receive net proceeds of approximately $110.0m when the transaction closes in the second quarter.
The FTSE 250-listed firm added it intends to use the expected net proceeds to either re-invest in "attractive new growth opportunities" in low carbon power generation or return capital to shareholders.
Chief executive Joseph Brandt said: "This sale is consistent with our drive to unlock value from undervalued assets in our portfolio and deliver further attractive risk-adjusted returns for our shareholders, and demonstrates that value differential for our assets in the public and private markets."
As of 0825 GMT, ContourGlobal shares were up 0.75% at 188.20p.