Intelligent Energy buys Indian energy management business

1st Oct 2015 09:45

(ShareCast News) - Intelligent Energy has signed an agreement to acquire GTL Limited's energy management business for around £85m to provide energy to over 27,400 telecom towers in India.Up to £25m will be financed from the company's existing cash resources, while the rest will be financed from debt funding secured against the revenue stream of the energy management business.The energy technology group said the deal supports the growth strategy of its Distributed Power and Generation division. It said the transaction provides a platform for the large scale economic deployment of fuel cells as a distributed power solution.Intelligent Energy expects to earn £120m revenue per year with an initial estimated earnings before interest, taxes, depreciation and amortisation and cash margins pre-financing of around 15%.Chief executive officer Henri Winand said: "We have not just announced a landmark transaction for Intelligent Energy, but a transaction which is important for the fuel cell industry itself."From a financial perspective, this transaction provides high quality, long-term, recurring cash flows and we have a plan in place to improve the margins from those cash flows over the life time of the contracts."At 0952 BST, Intelligent Energy shares were up 8.7% at 109p.