LONDON (ShareCast) - Renewable energy producer Econergy confirmed today that it is looking to “sell or merge” the group to maximase the value of its assets.
The group said shortly after appointing Piper Jaffray to undertake a strategic review of the company, it received a number of preliminary offer approaches, including that of Consensus Business Group and Trading Emissions, revealed last week.
Independent non-executive directors were appointed on 29 March 2008 to oversee the strategic review process.
“As a result of these discussions and an assessment of prevailing capital market conditions in the context of its short and medium term funding requirements, the Independent directors have concluded that shareholder value is more likely to be maximised through seeking a sale or merger partner which will be better placed to fund the company's extensive development portfolio,” added the group.
There can be no certainty that an offer will forthcoming.
The independent directors believe the company has sufficient working capital to continue to deliver its existing Phase 1 projects and to maintain momentum in its Phase 2 activities whilst a buyer or merger partner is sought in the next few months.
Econergy also added that it has been affected by a weak US dollar, particularly versus the Brazilian currency.
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