SIG sells stake in Ice Energy Technologies

14th Oct 2014 08:49

SIG, the European specialist building products distributor, has sold its 50.6% stake in Ice Energy Technologies, a renewable energy provider.The existing Ice Energy management team of Andrew Sheldon and Andrew Hillier purchased the stake for an initial cash payment of £1m, together with an earn-out of up to £5m dependent on the performance of the firm over the period to 31 March 2019.SIG is also providing a £0.85m interest bearing loan to Ice Energy which is repayable in five years."This disposal follows challenging market conditions resulting from delays to, and the subsequent slow uptake of, the UK government's renewable heat incentive scheme," SIG said.SIG expects to incur an associated exceptional charge in 2014 £8m relating to the divestment, of which £1m is cash. A charge of £3.3m has already been recognised in the group's half year results.