Just Energy offloads Hudson UK to Shell Energy

Just Energy Group Inc. has executed a share purchase agreement to sell the company’s UK operations, Hudson Energy Supply UK Limited, to Shell Energy Retail Limited for up to GBP10.5 million (US$12.8 million).

Pursuant to the share purchase agreement, Just Energy will receive GBP2 million (US$2.5 million) at closing and up to GBP8.5 million (US$10.8 million) to be paid depending on whether the Office of Gas and Electricity Markets (Ofgem) or the Department for Business, Energy and Industrial Strategy reinstate the capacity market payments in the UK within a specified period of time. Until completion, both companies will continue to operate independently. Under the terms of the deal, on completion, Hudson UK will operate as a wholly-owned subsidiary of Shell Energy Retail Limited. Just Energy is committed to lowering leverage and expects to apply the proceeds from the sale against its indebtedness.

Hudson UK supplies around 200,000 UK residential customers with gas and 100% renewable electricity through its residential trading arm, Green Star Energy, as well as providing bespoke gas and 100% renewable electricity contracts to around 2,000 commercial customers.

The transaction is subject to customary closing conditions, including merger control approval and is expected to close by the end of 2019.

Just Energy received financial advice and an opinion from its financial advisor, National Bank Financial Inc.