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Sale of Turbines
IPSA Group PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code IPSA ISIN GB00BOCJ3F01
JSE Share Code IPS ISIN GB00BOCJ3F01
("IPSA" or "the Company")
Sale of Turbines
IPSA Group PLC (AIM:IPSA), the developer, owner and operator
of power generation capacity in southern Africa, announces
that that it has agreed to sell its two remaining Siemens
Westinghouse 701 DU gas turbines to Iris Eco Power Sdn Bhd
("Iris"), a Malaysian power development company, for
consideration of US$31 million (approximately £19.4 million).
Iris has paid a deposit of US$3.1 million and the balance is
due on or before 5 November 2012. The equipment sale agreement
remains subject to the approval of the Company’s major
creditors, Standard Bank PLC (“Standard Bank”) and TurboCare
SpA (“TurboCare”). A further announcement will be made in due
course.
IPSA has agreed that all proceeds from the contract, including
the deposit, will be paid into a trust account to be operated
by Standard Bank and TurboCare, which will receive funds ahead
of all other creditors. Thereafter, funds will be released to
the Company, enabling the Company to settle with all its
creditors. The working capital position of the Company will
remain extremely tight until the sale of the Turbines is
complete.
These two remaining turbines had previously been contracted to
be sold to Lezayre Holdings Limited ("Lezayre"), for which
IPSA had received a non-refundable deposit. That contract has
not completed due to extensive delays to Lezayre's project. As
announced on 9 July 2012, since Standard Bank and TurboCare
have not formally approved the contract extension, the Lezayre
contract has expired.
Commenting, Richard Linnell, Chairman of IPSA, said:
“Whilst we had hoped that Lezayre would have completed the
acquisition of the turbines by now, I am pleased that we have
received deposit funds from Iris and I look forward to
completion shortly at which time our liquidity position will
be transformed, with cash on deposit and no net debt. I am
grateful to IPSA shareholders and creditors for their
patience."
For further information contact:
Phil Metcalf, CEO,
IPSA Group PLC +44 (0)20 7793 5615
John Llewellyn-Lloyd / Harry Stockdale,
Execution Noble & Company Ltd
James Joyce / Harry Ansell
W H Ireland Ltd
+44 (0)20 7456 9191
+44(0)20 7220 1666
Riaan van Heerden,
PSG Capital (Pty) Ltd
+27 (0)21 887 9602
15 October 2012
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