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Drax sells gas assets to VPI Holding for £193.3 million
StockMarketWire.com
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Power group Drax said it had sold Drax Generation enterprise to VPI Holding for £193.3 million.
Drax Generation enterprise held four combined cycle gas turbine power stations.
This included £29.0 million of contingent consideration associated with the option to develop a new CCGT at Damhead Creek.
The payment of £193.3 million included £29.0 million of contingent consideration associated with the option to develop a new combined cycle gas turbine at Damhead Creek.
The combined cycle gas turbines had performed well since acquisition by Drax in December 2018, but do not form part of the group's core flexible and renewable generation strategy, the company said.
Drax expected to realise a premium on sale, and use the proceeds to develop its biomass supply chain and accelerate its ambition to become a carbon negative business by 2030.
'By focusing on our flexible and renewable generation activities in the UK we expect to deliver a further reduction in the Group's CO2 emissions, which should accelerate our ambition to become not just carbon neutral but carbon negative by 2030,' Drax said.
The company also provided a trading update and maintained guidance for adjusted EBITDA to meet market expectations.
At 9:14am: (LON:DRX) Drax Group PLC share price was 0p at 322.4p
Story provided by StockMarketWire.com
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