GOLD COAST ENERGY COMPANY ACQUIRED FOR $13M

Written on the 2 February 2010

GOLD COAST ENERGY COMPANY ACQUIRED FOR $13M

GOLD Coast energy company eco-Kinetics has been acquired by the ASX listed CBD Energy (ASX code: CBD) for $13 million.

The deal is subject to capital raising and due diligence by the end of 2009 and will comprise a $5 million cash payment on completion with the remainder to be paid in cash and shares over the next 2.5 years.

The acquisition marks the end of a restructuring phase for CBD and will position the company’s earnings to complete a number of renewable energy projects in Australia, China and New Zealand.

CBD expects its latest buy to enhance its capabilities with current projects including two wind farms in NSW (totaling 120MW), energy storage in China as part of a $US500 million solar farm and investment in the fast growing Planet Power renewable energy business. Projects include renewable energy solutions on King Island and the Chatham Islands.

It now also has access to an engineering team adept at delivering large scale private and government-funded projects.

Gold Coast Business News reported in October that Eco-kinetics had achieved 900 per cent growth in the last 12 months. The company has powered 3000 Queensland homes after clinching the State Government Solar Homes contract last year. The company will also open an office in every Australian state and take renewable energy solutions to the South Pacific, Middle East, US, Brazil and China.

Eco-Kinetics has forecast revenues of around $40 million for the year ending June 30, 2010. The management team and engineering staff have been retained by CBD for a further three years.

“We’re not business managers, we’re investors and the team at eco-Kinetics are very good at what they do,” says CBD managing director Gerry McGowan.

“We have spent the last 12 months getting to know them and they have an outstanding team. This is a company transforming deal for CBD and I’m delighted eco-Kinetics is joining our team to make our combined services and capabilities better.

“Eco-kinetics provides renewable energy solutions to households and businesses across a wide geographical area and importantly it adds engineering and project management capabilities we can apply in all our business areas. The acquisition puts all the pieces in place for a profitable and growing platform as a diversified renewable energy business.”

Eco-Kinetics managing director Edwin Cywinski (pictured) says the decision to join CBD was an easy one.

"Gaining access to CBD's excellent resources will help us achieve our goals plus provide excellent career opportunities for our staff,” he says.

The Federal Government’s Carbon Pollution Reduction Scheme (CPRS) is expected to bring a renewed focus to the sector, but convincing investors may take a bit longer.
CBD’s share price remained unchanged following the announcement and are trading at 17c per unit.

“The whole carbon trading initiative will work to our advantage. It’s not our ambition to be in one field, but to be in multiple fields and that’s the same for eco-Kinetics,” says McGowan.


Latest News

SUPREME COURT ORDERS OCTAVIAR GROUP TO WIND UP

THE Queensland Supreme Court has ordered the Octaviar Group of companies (formerly known as MFS Group) to be wound...

CEOS BRAVE THE COLD TO RAISE $1.4 MILLION FOR THE HOMELESS

MORE than 400 executives confronted the cold last night in the annual Vinnies CEO sleepout, which took place benea...

JENNIFER WESTACOTT ON BANK TAX: IT EXPOSES GOVERNMENT "DESPERATION"

South Australia's new bank levy exposes the desperation of a government that is unable to get its own budget and ...

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

Related News

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

THE DOCTORS WHO PLUNGED INTO THE SHARK TANK AND SURVIVED WITH A $500,000 INVESTMENT

THEIR mission is to change the face of cancer care with an app that empowers and connects patients and care givers...

IMF BRACES FOR BIG LOSS FOLLOWING WITHDRAWAL FROM SPOTLESS CLASS ACTION

LITIGATION fund IMF Bentham (ASX: IMF) is set to lose as much as half a million dollars after it ceases funding one o...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter