SIG, a distributor of specialist building products in Europe, has announced that it has sold its 50.6% stake in Ice Energy Technologies for £1.
Ice Energy is a renewable energy solutions provider which specialises in ground and air source heat pumps.
SIG said the disposal follows challenging market conditions resulting from delays to, and the subsequent slow uptake of, the UK government’s Renewable Heat Incentive (RHI) scheme.
The consideration for the divestment comprises a nominal initial cash payment of £1 together with an earn-out of up to £5m dependent on the performance of Ice Energy over the period to 31 March 2019.
SIG expects to incur an associated exceptional charge in 2014 of around £8m relating to the divestment.
£3.3m of this charge has already been recognised in the Group’s Half Year results.
Ice Energy managing director Andrew Sheldon commented: “This is the start of an exciting new phase for Ice Energy as the RHI gathers momentum. It is the best of both worlds, giving us flexibility and a continuing trading partner to carry on leading the UK’s transition to a renewable future.”