Vulcan Industries Plc - Forepower Lincoln (250) Limited, disposal of 25.4 % and project profit share agreement

Vulcan Industries Plc - Forepower Lincoln (250) Limited, disposal of 25.4 % and project profit share agreement

PR Newswire

LONDON, United Kingdom, June 27

27 June 2024

 

Vulcan Industries plc

("Vulcan" or the "Company")

 

Forepower Lincoln (250) Limited, disposal of 25.4 % and project profit share agreement

 

Vulcan Industries plc (AQSE: VULC) is pleased to announce that it has disposed of a further 25.2% of its interest in the share capital of Forepower Lincoln (250) Limited ("FPL 250"), a 240-megawatt (MW) Lithium-ion Battery Storage project. The Company retains its economic interest of 50.1% in the project.

 

Disposal rationale

Following the previous disposal of 49.9% of FPL 250 on 25 October 2023, the project has advanced through the planning process and has recently received an energization date from the National Grid. As a result the project now has an uplift in value that the acquiror is keen to service and project manage closely. Vulcan nonetheless retains its economic interest of 50.1% in the project.

 

Forepower Lincoln (250) Limited

FPL 250 owns a 240MW Lithium-ion Battery Storage project and holds a grid connection contract (to connect to the National Grid Infrastructure) with a prospective energization date of 2034, together with an option to lease a parcel of land for a minimum of 25 years. It has been identified as a major infrastructure project which is currently in the planning stage. The management team of FPL 250 have a track record in identifying Battery Storage opportunities, obtaining planning, developing and bringing projects online. FPL250 has reorganized its share capital into 751 A shares and 249 B shares and amended its articles to reflect that the A shareholders will receive 49.9% of the consideration proceeds on sale of the project and the B shareholders will receive 50.1%. Vulcan holds the 249 B shares and therefore retains a 50.1% economic interest in the project.

 

Total Consideration

The total consideration receivable is £60,000 payable in cash, £20,000 due on completion and £40,000 deferred for 6 months and payable in monthly instalments of £5,000 thereafter.

 

Following the initial disposal of 49.9% in October 2023, the Buyer has agreed to advance a total of £500,000 to fund the planning phase in the form of a loan.  This loan, with a zero coupon, is secured over the project assets.  It is intended that this loan will be offset against any remaining consideration due.

 

Ian Tordoff, Executive Chairman, "We are delighted announce the prospective energization date and to be working with the buyer to move the project forward in the planning phase.  This is expected to enable the project to crystalise additional value for shareholders. Further announcements of the attainment of project milestones will be made in due course.  Battery Storage is an important part of the drive for increased renewable energy in the UK and provides significant opportunities for growth in future."

 

For further information, visit: https://vulcanplc.com 

 

Contacts

Vulcan Industries plc
Ian Tordoff, Chairman	[e-mail]
First Sentinel Corporate Finance Ltd (AQSE Corporate Adviser)	[phone]
Brian Stockbridge
Gabrielle Cordeiro

 

 

About Vulcan

Vulcan seeks to acquire and consolidate traditional but historically profitable engineering, manufacturing, and industrial SMEs for value and to enhance this value in part through group synergies, but primarily by unlocking growth which is not being achieved as a standalone private company. For more information visit https://www.voxmarkets.co.uk/listings/PLU/VULC

 

Forward Looking Statements

This news release may contain "forward-looking" statements and information relating to the Company. These statements are based on the beliefs of Company management, as well as assumptions made by and information currently available to Company management. The Company does not undertake to update forward-looking statements or forward-looking information, except as required by law.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. 

 

 

 

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