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LONDON (Thomson Financial) - ReEnergy Group Plc. said it has entered into an
agreement with a LSE-listed company for the possible sale of its autoclaving
technology unit Estech Europe Ltd., for about 1.9 million pounds cash.
Estech, a developer of autoclaving technology, is the group's only
operating subsidiary, and ReEnergy said it intends either to adopt a revised
investment strategy or return cash to shareholders and wind itself up.
The waste management, sustainable energy and water treatment company said
prior to the signing of a sale and purchase agreement in relation to Estech, the
acquiring company will fund the group's daily cash burn of 5,800 pounds, up to a
maximum of 180,000 pounds.
ReEnergy said these payments will be deducted from the consideration price
after completion of the transaction and said it expects to sign the binding sale
and purchase agreement before May 15, after getting the necessary shareholder
approval.
TFN.newsdesk@thomsonreuters.com
man/slm
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