Solar power producer in backdoor deal
Solar energy producer GO Group has struck a deal for a backdoor listing through the struggling Solco business.
Solco said an agreement to acquire GO Group from Urban Group Energy Holdings would see the vendor take a stake of up to 79 per cent in the WA company.
GO Group founder Adam Pearse would become managing director of Solco on completion of the deal.
Solco's share price more than doubled on the news, up 0.8� to 1.5�.
While the majority of GO Group's operations are on the east coast, Solco said its head office would stay in Perth.
Solco plans to raise $3 million from investors to fund the acquisition.
GO Group's Go Energy business is an electricity retailer that owns and operates solar power plants, and builds solar systems for commercial clients.
Solco said the move would realise the company's strategy of moving into higher value renewables businesses and exiting commodity based activities, such as solar equipment wholesaling.
"The GO Group comprises several well-established and profitable renewables businesses and several emerging businesses with substantial potential," Solco chairman David Richardson said.
"We have long believed that the major commercial opportunities in the renewables sector are now in the areas of financing small-scale generating capacity and bundling retail contracts.
"The acquisition of the GO Group ensures that Solco has a substantive and immediate presence in both markets," Mr Richardson said.
