Simec Atlantis Energy (SAE) has warned that its main shareholder, a company that forms part of Sanjeev Gupta-owned GFG Alliance, is facing “purported” administration proceedings.
SAE stated that it “wishes to announce that it has received correspondence in relation to the purported appointment of receivers over all of the shares of its major shareholder, SIMEC UK Energy Holdings Limited (SUEH), a GFG Alliance member.
SUEH owns approximately 43% of the issued share capital of SAE.
SAE developed the Meygen tidal array in Pentland Firth.
In a London Stock Exchange announcement published today, SAE said the GFG Alliance has informed SAE that it “intends to challenge the validity of the appointment and is seeking appropriate advice”.
SAE’s statement continued, “For the avoidance of doubt, SAE wishes to make clear that the above process relates to its major shareholder, SUEH and not to SAE itself.”
The GFG Alliance had also informed SAE that it wishes to make clear that SUEH is a holding company for the investment in SAE and the appointment of the receivers does not extend to the rest of the SIMEC group or other members of the GFG Alliance.
SAE reiterated that, as announced on 7 April 2021, SAE is an independent company whose shares are admitted to trading on AIM and is not a member of the GFG Alliance.
Reuters and financial press reported earlier this month that GFG Alliance is being investigated by Britain’s Serious Fraud Office in a probe that encompasses the conglomerate’s links to collapsed lender Greensill Capital.