Shares in renewables developer Simec Atlantis Energy have soared after the company confirmed its major shareholder had regained control
Receivers were appointed earlier this year over all of the shares of Simec UK Energy Holdings Limited (SUEH), which has a 41% stake in the Edinburgh-based firm.
SUEH is part of Sanjeev Gupta’s GFG Alliance, which has been embroiled in a Serious Fraud Office (SFO) investigation.
The probe is focussed on suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the GFG Alliance.
In May, legal proceedings were opened over the appointment of receivers in the British Virgin Islands, where SUEH is registered, to “challenge the validity” of the move.
And Simec Atlantis has now been told that the receiver’s appointment has ceased, and they have resigned as directors of SUEH.
The GFG Alliance also confirmed it is in control of the Simec Atlantis shares.
Stakes in Simec Atlantis skyrocketed this morning following the announcement. At 9.15 am, the company was trading at 6.25p a share, up almost 50%.
In a statement, the company said: “SAE understands that this matter is now resolved and looks forward to a more stable relationship with its major shareholder.
“SAE is an independent company, whose focus remains the delivery of its world leading projects, which can play a critical role in the journey to net zero.”
Simec Atlantis is behind the MeyGen tiday array in the Pentland Firth, which is deemed to be the “largest” project of its kind anywhere in the world.
And there are plans to develop the project further, with plans to install a subsea hub at the site that can accommodate multiple turbines, all hooked up to a single power cable.
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