SIG has sold its 50 per cent stake in renewable heat firm Ice Energy Technologies for £1.
The building products firm said the disposal followed “challenging market conditions resulting from delays to, and the subsequent slow uptake of, the UK government’s Renewable Heat Incentive scheme”.
SIG sold its 50.6 per cent stake in Ice Energy, a renewable energy solutions provider specialising in ground and air source heat pumps, to the existing management team of Andrew Sheldon and Andrew Hillier.
The firm said it expects to incur an exceptional charge in 2014 of around £8m relating to the disposal, of which £1m is cash. It added that £3.3m of this charge has already been recognised in the group’s half-year results.
It sold the stake for an initial cash payment of £1, with an earn-out of up to £5m dependent on the performance of Ice Energy 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.