Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Scirocco agrees to sell EAG for £2.6m
(Sharecast News) - Scirocco Energy has conditionally agreed to sell its interest in Energy Acquisitions Group (EAG) for £2.6m, it announced on Thursday, plus up to £0.15m in contingent consideration, to OrbeNovo Capital. The AIM-traded firm said the transaction would transfer EAG's entire share capital to ONC Bidco 1.
It said the deal, signed on 19 December, would require shareholder approval and AIB's change of control consent, with a general meeting planned for January.
Scirocco said it would remain an investing company after the transaction.
The decision to divest EAG was based on capital constraints, uncertainty in contingent payments, and declining asset values due to global interest rate increases since 2022.
Proceeds were expected in early 2024, with a pro forma cash balance of £4m.
The company said it would retain an 8.39% interest in Kiliwani North, worth £0.16m as a contingent decommissioning liability.
Scirocco's board said it would explore options for delivering shareholder value, including cash distribution, further investments, or a reverse takeover transaction.
"I am pleased to announce a strategic decision regarding the proposed divestment of our interests in EAG," said chief executive officer Tom Reynolds.
"This move is grounded in a thorough evaluation of key factors influencing the growth and development of our investments.
"The combination of the challenges of retaining EAG without predictable access to capital, and considering the decline in Greenan's remaining life, the board is convinced that the opportunity to sell now on the terms described here provides the optimal window for divestment."
Reynolds said that while the consideration payable to the company fell short of the total investment made into EAG, the valuation of EAG mirrored the business's fair market value in its current form.
"The board will continue its review of the range of alternative opportunities and next steps for the company."
At 1323 GMT, shares in Scirocco Energy were flat at 0.28p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.