News

April 16, 2008

Econergy International Puts Up The For Sale Sign

By Rue Swabey

The latest bout of activity at Aim-traded independent power producer Econergy International started when the shares rose 23 per cent to 29p in trading on Thursday 10th April, following news that the Tchenguiz family trust, which owns 18.3 per cent of Econergy through contracts for difference, has approached the company with plans to take it private. Econergy responded to this move by confirming that it had received a number of preliminary approaches. Then, on Friday 11th Econergy said that it had considered a share-for-share exchange at a nil premium made by another shareholder, Aim-traded Trading Emissions Plc (TEP), on 27th March, but had told TEP that such an offer undervalued the company. Then on 14th April the company updated the market more fully, and effectively put itself up for sale. The offers from Consensu and Trading Emissions were mentioned, but only to provide context, so it seems all options are still on the table.

The news is not surprising, though, given Econergy’s dismal share price performance. It’s down 71 per cent from its 2006 listing price of 100p. Analyst Agustin Hochschild at Dawnay, Day Corporate Broking believes that the company’s market capitalisation of £24.8 million is significantly lower than the sum of its parts.   

Vincent Tchenguiz, the Iranian property billionaire, has invested heavily in green energy through the Consensus Business Group Group. Aside from its interest...