October 09, 2019 - 5:02 AM
TORONTO - Just Energy Group Inc. has signed a deal to sell its operations in the United Kingdom to Shell Energy Retail Ltd. for up to roughly $17 million.
The company says the sale of Hudson Energy Supply UK Ltd. is part of its strategy to focus on its North American operations and improve liquidity.
Under the agreement, Just Energy will receive approximately $3.2 million at closing and up to $13.8 million depending on whether the Office of Gas and Electricity Markets or the Department for Business, Energy and Industrial Strategy reinstate the capacity market payments within a specified period of time.
Just Energy, which provides electricity and natural gas to homes and businesses with operations in the United States, Canada and the United Kingdom, launched a review of its strategic alternatives in June.
It says the process is ongoing and the board is comfortable with the progress to date.
In addition, the company says it has found $20 million in annualized cost savings following a review of its business in addition to $40 million identified at the end of its 2019 financial year.
This report by The Canadian Press was first published Oct. 9, 2019.
Companies in this story: (TSX:JE)
News from © The Canadian Press, 2019