ISOTeam to divest stake in Sunseap Group for S$12.2 million

Singapore

ISOTEAM has agreed to divest its entire 1.18 per cent equity interest in clean energy solutions provider Sunseap Group for about S$12.2 million at S$270 per sale share, announced the construction group on Friday (Nov 5).

The shares will be sold to renewable energy producer EDP Renewables, who earlier this week bought a substantial stake in Sunseap which would value the company at S$1.1 billion, said the latter company in a statement on Nov 3. The transaction is subject to approvals, with completion slated for the first quarter of 2022.

ISOTeam in 2017 invested S$5 million, comprising 39,475 Series C convertible preference shares as well as 5,611 ordinary shares of the company, for its stake in Sunseap.

Through its divestment, the group is expecting a gain of S$4.2 million over the S$8 million book value of the sale shares as at end-June 2021, and a S$7.2 million gain over the S$5 million initial cost of investment.

Anthony Koh, chief executive of ISOTeam, said the divestment will improve the group's liquidity and allow it to reallocate resources to improve and optimise the utilisation of assets.

This will also free up funds that can be applied towards the general working capital requirements of ISOTeam and the expansion of its renewable business, he added.

"We have enjoyed a long and synergistic relationship as one of Sunseap's major installation partners since 2015 . . . ISOTeam's focus on the renewable energy business remains intact and we believe there will be opportunities to work together on more projects in the future as Singapore ramps up its SolarNova programme," said Koh.

Shares of ISOTeam closed S$0.003 or 2.17 per cent lower at S$0.135 on Friday.