The biomass firm revealed that it had agreed a £12.3mln deal to sell its controlling stake in the Helius CoRDe Ltd business.
It is, however, a bitter-sweet rally for investors. Although the sale is priced at a significant premium to the group’s overall market capitalisation, it also marks the end of the group’s growth aspirations.
Helius also confirmed that planning consent for the proposed Avonmouth project is set to expire on March 26 and it had not been able to secure necessary project finance, and as a knock-on it doesn’t believe it will be able to deliver a proposed project in Southampton either.
The company will now move to cancel its listing on London’s AIM market and return cash to shareholders.
Having considered the trade-off between potential future returns and current value available for Shareholders we consider that the disposal of our interest in Helius CoRDe and the subsequent return of all available cash provides the best value for our shareholders as a whole,” said Helius chairman John Seed.
On AIM, in Monday’s early deals, Helius Energy shares jumped 2.28p or 140% to trade at 3.0p. At this price the group is valued at £7.6mln.