Jun 19, 2014 - UK-based power producer Rame Energy Plc (LON:RAME) said yesterday it is acquiring local solar photovoltaic (PV) systems installer Beco Ltd for GBP 150,000 (USD 255,000/EUR 187,000).
The buyer expects to see its engineering division's revenues and profits go up thanks to the buy. Also, Beco's acquisition will support Rame's plan to develop solar projects as an Independent Power Producer (IPP).
The earnings-accretive transaction is to be wrapped up at the very start of July. Rame plans to cover the purchase price through the issue of 989,283 new ordinary shares corresponding to a 1% stake in it. Beco will also receive a loan from its new owner to redeem previous obligations.
The target is engaged in the installation of solar PV systems for domestic, commercial, marine and off-grid uses. Moreover, it distributed and installs wind turbines and also manufactures its own range of solar charge controllers and specialist batteries. In the nine months through March 2014, Beco generated an unaudited revenue of some GBP 1.32 million and was profitable. Its current order book, till September 30, 2014, is worth about GBP 1.3 million.
Rame is a supplier of wind, solar and diesel energy to blue-chip customers. The company expects to start operations of the first two phases of a 300-MW plan in Chile later in 2014.
(GBP 1.0 = USD 1.701/EUR 1.249)
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