News

June 16, 2008

Suez’s Latin American Division Trumps Trading Emissions’ Offer For Econergy

By Rue Swabey

Suez Energy South America (SESA), part of France’s giant industrial and services group Suez, has trumped the bid from UK-based Trading Emissions for independent green energy producer, Econergy International. On 13th June, SESA made a 45p cash per share offer for Econergy, a price that represents a 50 per cent premium to the 30p cash offer made by Trading Emissions, and accepted by Econergy’s board in May. SESA’s offer values Econergy at £39.2 million. In response Econergy’s share price jumped 30 per cent to 43p on the news.

US-based Econergy is an independent power provider with a pipeline of renewable technologies in Latin America and the US. Most of the business is “pipeline” as only one asset - a 147MW hydroelectric generator in Bolivia - is operational. Econergy floated on Aim in 2006 at 100p, but its share price has declined steadily since then. It reached a low of 35p in February. The problem wasn’t related to Econergy’s portfolio but to the company’s lack of cash. On admission to Aim Econergy raised US$100...