UK-headed renewable energy, forestry management and timber processing business Active Energy Group Plc (AEG), has announced a reorganisation of the Group structure to focus on its two principal growth areas – the global commercial roll-out and development of AEG's biomass coal replacement fuel product and development of a forestry management business based in various territories – while reducing its operating exposure to the Ukraine.
According to a statement, Active Energy Group (AEG) has established two separate affiliate companies to hold the Group’s current and future AEG CoalSwitch and AEG Timberlands assets. Accordingly, AEG has decided to reduce its operating exposure to Ukraine and will consider offers for its Ukrainian WoodFibre operations (AEG WoodFibre). It is envisaged that under the terms of any transaction, AEG will retain a share of the current and future revenues from AEG WoodFibre.
Advanced Biomass Solutions Plc (ABS) will hold all of the current CoalSwitch operations controlled by AEG in North America, along with all future projects relating to the company’s CoalSwitch biomass coal replacement technology whereas Timberlands International Plc (Timberlands) will hold all of the current timberland assets controlled by AEG, along with forthcoming timberlands projects, which AEG acquires in the future.
ABS and Timberlands represent two highly compelling business opportunities for AEG, which we believe are capable of establishing important new franchises in each of their existing industry sectors. The market opportunities being presented to each of these companies show considerable commercial potential. Accordingly, the Board has resolved that to achieve optimal success and capitalise on this, AEG needs to create a more defined group structure to execute these opportunities in an efficient and value accretive manner. The Reorganisation will decrease AEG’s future involvement in AEG WoodFibre and operations in the Ukraine, thus significantly reducing the Group’s perceived geographic risk profile and allow investors to focus on two exciting investment strategies that are complementary but also have significant value as standalone operations, said Michael Rowan, Chairman of Active Energy.