LONDON, UK: Esken, the aviation and renewable energy group, has agreed to sell its stake in Mersey Bioenergy, a combined heat and power plant in Widnes, to UK Waste Resources and Energy Investments L.P., a member of the Bioenergy Infrastructure Group, for £9 million.
The deal, announced on Tuesday, is part of Esken’s ongoing strategy to dispose of non-core assets and reduce its debt. Esken’s investment in Mersey Bioenergy comprised a 39.6% shareholding and £7.3 million of unsecured loan notes, which had been fully written down by Esken and did not contribute to its profit or loss in the last financial year.
The cash consideration of £9 million will be paid on completion, which is expected to take place before the end of August 2023, subject to certain conditions, including the refinancing of Mersey Bioenergy by Bioenergy Infrastructure Group and the capitalisation of all existing loan notes.
Esken said the disposal will not affect its fuel supply agreement with Mersey Bioenergy, which expires in July 2035.
Mersey Bioenergy owns and operates a plant that converts waste wood into renewable electricity and heat. It has a capacity of 21.5 megawatts and supplies power to the National Grid and heat to a nearby industrial site.
Esken Limited sells of Stobart Air and Carlisle Lake District Airport to Ettyl Limited