Proactive Investors - eEnergy PLC (LON:EAAS) traded 10% higher on Monday after confirming the disposal of its energy management division.
Flogas Britain will buy the division for £29.1 million plus an additional contingent consideration based on the trading performance for the period to 30 September 2025, a company statement revealed.
The net-zero digital energy services provider said the deal will be voted on by shareholders at its AGM on February 7.
An additional contingent consideration is expected to be between £8 million and £10 million and will help account for the division’s total enterprise value of £30 million when adjusted for net debt and normalised working capital.
Funds from the deal will be used to help pay off around £8 million of debt, finance day-to-day operations and provide cash for new high-growth energy service investments.
eEnergy said it will now focus on its energy services business, which aims to roll out EV and solar products.
Harvey Sinclair, eEnergy chief executive officer, comments: " Once approved by shareholders, the transaction will unlock significant immediate cash for eEnergy and give the opportunity to deliver significant additional value.
“Whilst Energy Management is the smaller by revenue of our two divisions, the initial transaction proceeds alone will be c. 90% of eEnergy's current market capitalisation.”