Esken Renewables to be sold for £107m

The move comes just 18 months after Esken changed the name of its subsidiary from Stobart Energy (see letsrecycle.com story).

In February, Esken also announced that Esken Renewables is expected to deliver £2 million less in predicted earnings for the full year ending 28 February due to “unplanned” outages at the  biomass plants it provides waste wood to (see letsrecycle.com story).

Stability

This week (1 November) Esken announced that the planned disposal will provide it “with increased financial stability to support the previously announced managed sale of London Southend Airport”. 

Completion of the disposal is conditional on approval by shareholders, the deed of settlement and variation being duly executed by Esken Renewables and Tilbury Green Power Limited.  

David Shearer, executive chairman of the company commented: “It is almost a year since the Board announced that we would undertake a strategic review of the core operations of the Group. Since then, we have worked with advisers on a comprehensive process to find the right strategic partner for the Renewables business going forward. I am pleased that, in Pioneer, we have found such a partner and wish the proposed new owners, as well as the management team and staff, good luck for the future. 

“The sale of Esken Renewables is a positive outcome set against a persisting challenging market with an increase in interest rates over the last 12 months that has supressed M&A activity. Following this sale, and subsequent repayment of our debt facility, our focus will now primarily turn to addressing the maturity and terms of the Exchangeable Bond, and to the sale of LSA, to facilitate a managed process to realise value for Shareholders.” 

Esken 

Esken Renewables, formally Stobart Energy, has long-term contracts to supply 1.7 million tonnes of fuel (mainly waste wood) to biomass plants, generating renewable energy equivalent to the annual domestic electricity needs of 2% of the UK population. 

It also operates a site in Tilbury which exclusively supplies wood to the nearby biomass site.