Equitable Law is pleased to announce the completion of the sale (by its shareholders) of GT Energy UK Limited (“GT Energy”) to IGas Energy PLC (“IGas”).
Under the terms of the deal, IGas will make an initial payment valued at GBP £500,000, while the maximum consideration under deferred (and contingent) ‘earn-out’ consideration is up to GBP £12m.
GT Energy is a developer of deep geothermal heat projects in the UK. GT Energy’s principal project is a 14MW deep geothermal project in the Etruria Valley, Stoke-on-Trent. The project is anticipated to supply zero-carbon heat to the city of Stoke-on-Trent through a council-owned district heating network, which is currently under construction. Under the current timetable it is anticipated that geothermal plant construction will commence in Q2/Q3 2021, with the plant scheduled to supply heat by March 2022.
IGas is a leading British energy company, admitted to trading upon the AIM market of the London Stock Exchange and currently producing oil and gas from over 100 sites across the country. IGas is committed to playing an important role in the UK’s energy transition and the acquisition of GT Energy represents a first step in this strategy. IGas is also seeking high-grade potential opportunities for other forms of energy, including electricity generation and storage.
Francis Wright, Managing Director at Turquoise International, GT Energy’s corporate finance advisor commented: “This transaction represents a significant step forward in the development of the low carbon heat market in the UK. Deep geothermal projects in cities such as Paris and Munich prove that this technology can deliver low- carbon heat at large scale. IGas’s understanding of geology, drilling, project management and operations will be invaluable in helping to establish this technology in the UK.
Equitable Law was engaged by GT Energy to assist its shareholders with the sale of the company. Dan Johnson, Founding Principal of Equitable Law commented: “As strong supporters of the greening of energy production in the U.K. we are delighted to have legally advised and assisted the multiple shareholder sellers with their transfer of GT Energy into new ownership, where skills and experience obtained in fossil fuel production can be utilised for low carbon energy production.
For more information please visit https://www.londonstockexchange.com/news-article/IGAS/igas-acquires-geothermal-energy-business/14687288.