Leaf Clean Energy Company Update on investment in Invenergy Wind LLC (0122X)
May 03 2016 - 2:50AM
UK Regulatory
TIDMLEAF
RNS Number : 0122X
Leaf Clean Energy Company
03 May 2016
3 May 2016
Leaf Clean Energy Company
Update on Valuation of Investment in Invenergy Wind LLC
Leaf Clean Energy Company ("Leaf" or the "Company") provides the
following update regarding the Company's investment in Invenergy
Wind LLC ("Invenergy")
Background
As previously announced the Company and Invenergy have a
disagreement on certain contractual provisions contained in the
operating agreement of Invenergy which can have a significant
impact on the value of Leaf's investment in Invenergy and
consequently on the quantum of future returns to Leaf's
shareholders. The following steps have been taken to resolve the
disagreement.
-- On 21 December 2015 Leaf filed a complaint against Invenergy
seeking payment to Leaf of $126.0 million.
-- On 28 December 2015 Invenergy initiated a process to purchase
Leaf's interest in Invenergy through a call, and Leaf also put the
interest to Invenergy. Two third-party appraisers were retained by
each of the Company and Invenergy to assess the value of the
investment.
Update
The Company has now received the appraisers' assessments of
valuation which are US$73.1 million and US$36.4 million. As the
assessments are greater than 20% apart, a third appraiser will be
jointly appointed and the average of the three appraisals will be
used to determine the put/call price.
The put/call process and the $126 million complaint are not
mutually exclusive. The complaint is still in progress and there
are no material updates at this stage.
Valuation of Invenergy Investment
The Company's Interim Report noted a Net Asset Value ("NAV") as
at 31st December 2015 of US$109 million being 92.28 cents per
share. Included within net assets was the Company's investment in
Invenergy ("the Invenergy investment"), held at a value of US$101
million The Invenergy investment is currently held at US$97.1
million, as a result of the recent US$3.9 million capital
return.
For illustrative purposes, if the average of the two existing
appraisals was used to determine NAV as at 31st December 2015 then
the resultant NAV for Leaf as at this date would have been US$62.8
million or 50.74 cents per share (34.71 pence per share at today's
exchange rate).
The Board cannot predict the outcome or the timing of either the
put call process or the complaint. The Board will provide further
updates in due course.
Enquiries:
Leaf Clean Energy Company
Mark Lerdal +1 (415) 264 5096
Cenkos Securities plc
Ivonne Cantu +44 (0) 207 397 8980
This information is provided by RNS
The company news service from the London Stock Exchange
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