Forms relationship with Gupta empire

Atlantis raises £20m to support Simec deal

Sanjeev GuptaRenewable energy company Atlantis Resources is raising £20 million through an issue of shares to fund its acquisition of a Welsh business and provide working capital for the enlarged group.

Atlantis, which will become part of the diversified energy and commodities group run by Sanjeev Gupta (pictured), will change its name to Simec Atlantis Energy after acquiring Simec Uskmouth Power in a reverse takeover announced in December.

Proceeds of the placing are to be used for working capital requirements of the enlarged group, to pay down some debt, to fund the costs of the FEED study for the Conversion of the Power Station to run on the waste derived energy pellet, for tidal project and technology development and to fund some of the costs of the proposals.

A relationship agreement has been entered into between Atlantis and SIMEC to govern the relationship between the Atlantis Group and the GFG Alliance to ensure that Atlantis can act independently of the GFG Alliance following Completion.

The acquisition is intended to be the first of a number of acquisitions from the GFG Alliance that will transform Atlantis into a diversified energy company of scale owning development and generating assets across the sustainable energy spectrum, supplementing its existing portfolio of tidal assets.

The GFG Alliance is a London-headquartered international group of businesses, founded and owned by the British Gupta family.  It combines energy generation, metal manufacturing, engineering, natural resources and financial services, working together to deliver a common business strategy.  It has total revenues of approximately $13 billion per annum, net assets of around $3.1bn and approximately 12,000 employees across 30 countries.

Andrew Dagley will join the board as chief financial officer and Mark Elborne and Jay Hambro will join the as representatives of SIMEC.  Duncan Black, Ian Cobban and Michael Lloyd will step down from the board.

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