SINGAPORE (THE BUSINESS TIMES) – ISOTeam has agreed to divest its entire 1.18 per cent equity interest in clean energy solutions provider Sunseap Group for about $12.2 million at $270 per sale share, announced the construction group on Friday (Nov 5).
The shares will be sold to renewable energy producer EDP Renewables, which earlier this week bought a substantial stake in Sunseap which would value the company at $1.1 billion, according to the latter company’s statement on Nov 3.
The transaction is subject to approvals, with completion slated for the first quarter of next year.
ISOTeam in 2017 invested $5 million, comprising 39,475 Series C convertible preference shares as well as 5,611 ordinary shares of the company, for its stake in Sunseap.
Through its divestment, the group is expecting a gain of $4.2 million over the $8 million book value of the sale shares as at the end of June this year, and a $7.2 million gain over the $5 million initial cost of investment.
ISOTeam chief executive Anthony Koh said the divestment will improve the group’s liquidity and allow it to reallocate resources to improve and optimise the utilisation of assets.
This will also free up funds that can be applied towards the general working capital requirements of ISOTeam and the expansion of its renewable business, he added.
“We have enjoyed a long and synergistic relationship as one of Sunseap’s major installation partners since 2015… ISOTeam’s focus on the renewable energy business remains intact and we believe there will be opportunities to work together on more projects in the future as Singapore ramps up its SolarNova programme,” said Mr Koh.
Shares of ISOTeam were trading up 0.4 cent, or 2.9 per cent, at 14.2 cents at 9.10am on Friday.