Nature Group enters US partnership agreement
Wastewater treatment business Nature Group entered into an agreement on Friday that would see it sell a 50% interest in its US subsidiary to the Ramky Group for an initial $1.6m fee.
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The US business, Nature Environmental and Marine Services (NEMS), located in Corpus Christi, Texas, is the operator of Nature Group's maritime waste treatment facilities along the Texan Gulf Coast. Last year it posted a net loss of roughly £132,000 on revenues of just over £3m in its last financial year.
An initial cash consideration of $1.6m was to be paid to Nature Group by Ramky, and the two firms combining to provide a loan totalling $1m to NEMS for the strengthening of its working capital.
Berend van Straten, chairman of Nature Group, said, "We have a strong working relationship with the Ramky team, and we look forward to pursuing the further opportunities that our combined expertise can create."
"The creation of shareholder value and immediate injection of cash is welcome to fulfil our current financial obligations and to continue to restructure our organisation and business. We are confident that the actions the board is taking will allow us to face the future with optimism," he added.
As of 1200 GMT, shares had surged 36.00% to 4.25p.