Loughborough firm’s £1.2bn Indian power deal collapses

Loughborough-based Intelligent Energy has called off a £1.2bn deal to provide energy to over 27,400 telecom towers in India has fallen through after talks with funders collapsed.

Discussions had been ongoing since the end of September with providers of capital to fund the acquisiton of the contracts from GTL, while Intelligent Energy has been providing services under an interim contract with GTL under the Essential Energy segment of the business.

This interim contract is estimated to have a revenue of around £7m a month with minimal gross margin. In the year ended 30 September 2016 the Essential Energy segment recorded Revenue of £85.1m, an adjusted EBITDA loss of -£2.5m and a loss after tax of -£5.5m.

A statement to the London Stock Exchange this morning said: “Following further discussions with GTL and between GTL and its banks, the deal to acquire the Energy Management Business will not now be consummated and the related funding discussions are ceasing. The interim contract with GTL will cease with effect from 30 November 2016.

“Options will now be considered around the restructuring of the Essential Energy segment and the operations in India and a further announcement will be made in due course.”