The Powerhouse Energy Group PLC (LON: PHE) share price traded sideways despite the company announcing that it had acquired the entire issued share capital of Engsolve Ltd for a cash consideration of £572,000.
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Engsolve is an engineering consultancy firm that has partnered and worked closely with PHE on the Protos Plastics to Hydrogen project and more recent prospective projects. The company is private, and PHE acquired an initial 48% stake in the firm on 12 August 2021.
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The remaining 52% stake in Engsolve was held by its two directors, Paul Emmitt and Richard Riddell. Mr Emmitt is the Chief Operating Officer (COO) of Powerhouse Energy. Mr Emmitt has sold his entire holding in Engsolve and is a related party under the AIM Rules for Companies.
Now that PHE wholly owns Engsolve, the company has an additional income stream from Engsolve that was previously unavailable. Engsolve generated a profit of £195,155 for the year ended 31 March 2023.
PHE’s acquisition of Engsolve will bring the company experience in engineering design and support, cost estimating and control, project management and safety risk assessments across various industries, including energy from waste, renewables and green energy, in-house.
The company's other independent directors, apart from Richard Riddell and Paul Emmitt, who are not considered independent, have approved the transaction and acknowledged that the related party transaction conducted by Paul Emmitt was fair and reasonable regarding the company’s shareholders.
Tony Garner-Hillman, PHE’s Non-Executive Chairman, commented: “We are delighted to have acquired the remaining share capital of Engsolve. This Acquisition consolidates Engsolve's position within PHE and will provide the Company with a secure engineering resource that will enhance the Company's capabilities and business for the future.”
Paul Emmitt, Engsolve’s Managing Director and Founder commented: “I welcome PHE completing the acquisition of Engsolve and look forward to growing the PHE business in the acceleration of the clean energy transition that is so urgently needed. The acquisition is testament to the expertise of the Engsolve team and of their efforts since Incorporation; I believe this will lead to growth and provide much-needed resources for PHE.”
*This is not investment advice.
The Powerhouse Energy (PHE) share price.
The Powerhouse Energy (PHE) share price traded sideways despite news of the acquisition.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.