Scirocco Energy PLC (AIM:SCIR) has announced the sale of its stake and investments in Energy Acquisitions Group Ltd for a total of £2.6 million.
Under the deal, Scirocco will sell its interest to OrbeNovo subsidiary ONC Bidco 1 Ltd, alongside the obligations of a loan to Energy Acquisitions, agreed in 2021.
A further £150,000 consideration will also be due upon Energy Acquisitions' takeover of certain target anaerobic digestion sites which have been in the pipeline for the last year.
"I am pleased to announce a strategic decision regarding the proposed divestment of our interests in Energy Acquisitions Group,” chief executive Tom Reynolds said in a statement.
“This move is grounded in a thorough evaluation of key factors influencing the growth and development of our investments.”
Scirocco explained the sale was being made after it had struggled to raise cash to fuel Energy Aquisitions' growth and as higher interest rates also took a toll.
“The board is convinced that the opportunity to sell now on the terms described here provides the optimal window for divestment,” Reynolds added.
“The valuation of Energy Acquisitions Group mirrors the fair market value of the business in its current form.”