Tie-up in renewables sector
Atlantis and billionaire Gupta in energy deal
The Edinburgh-based tidal power company will be transformed into a diversified renewables business while the transaction represents billionaire Gupta’s first move into the stock market.
The reverse takeover will see Aim-quoted Atlantis acquire Simec’s 220 megawatt Uskmouth plant in South Wales which will be converted to use an end-of-waste energy pellet as fuel.
Simec, in return, will get a 49.99% stake in Atlantis and its portfolio of tidal stream and barrage projects, including its flagship MeyGen project in northern Scotland and the Wyre estuary project in Lancashire as well as international opportunities in Europe, Asia and North America.
The broader transaction provides a route to further diversification and growth of this portfolio through engagement with the GFG Alliance.
The Uskmouth plant will receive fuel under a proposed 20 year fuel supply agreement with a joint venture company to be partly owned by Gupta’s Liberty House Group company.
The acquisition is expected to be the first of a number of similar deals and constitutes a reverse takeover of Atlantis under the AIM Rules .
Trading in Atlantis’s shares were suspended today pending publication of an admission document.
The group, which plans to change its name to Simec Atlantis Energy, said: “The transaction is anticipated to be the first of a number of acquisitions from the GFG Alliance that will transform Atlantis into “a diversified renewable energy company of scale owning high quality development and generating assets across the sustainable energy spectrum, supplementing its existing portfolio of assets.”
Tim Cornelius (pictured), CEO of Atlantis, commented: “Following the establishment of Atlantis Energy earlier this year, we are excited about the Transaction and the partnership with SIMEC and the broader GFG Alliance which will enable us to accelerate our growth and the diversity of our business.”