Helius Energy fizzles lower as Avonmouth partner walks away
Helius Energy lost a quarter of its market value on Tuesday after the renewable electricity company revealed that its partner at the 100MW Avonmouth project has walked away.
Helius Energy
4.25p
15:19 16/04/15
The total capital cost of construction of the project is estimated to be around £380m, comprising £155m from equity partners and the rest in debt, according to a statement by the company earlier this month.
Helius had said that one unnamed investment grade industrial partner had expressed interest in buying a significant minority stake in the project.
However, this partner has now said "it does not intent to participate in providing equity".
Helius said it is still working with financial advisor Macquarie Group to look for financing with other potential participants.
It is also going to review strategic options to "maximise value" from Avonmouth and from its wider portfolio of projects. However, it assured that this review "does not include the consideration or solicitation of bids for the listed company".
A recent fundraise means it has enough working capital until November.
"In the event that the company is unable to secure financing for the Avonmouth project on suitable terms, or at all, in that timescale it will be reliant on realising value from its projects in order to meet its liabilities as they fall due," Helius said.
The stock was down 25% at 6p in afternoon trade.