Just Energy announces sale of its UK operations to Shell Energy Retail
Category: #energy-and-environment  By Anchal Solanki  Date: 2019-10-10
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Just Energy announces sale of its UK operations to Shell Energy Retail

There are numerous ways businesses can increase their operational efficiency and enhance cost-cutting. As a part of an expansion strategy, organizations are often seen negotiating new contracts and looking for alternative suppliers.

A similar instance occurred recently when Just Energy Group Inc., a Canada-based natural gas and electricity retailer, announced that their company has completed a share purchase agreement with Shell Energy Retail Limited to sell its UK operations, dubbed Hudson Energy Supply UK Limited, for approx. C$17 million.

According to reports, Just Energy has also identified an incremental approximate of C$20 million in yearly cost savings because of this ongoing optimization efforts.

Scott Gahn, CEO and President, Just Energy, claims that sale of UK operations comes in line with their firm’s strategy to focus on its profitable North America operations along with improving its liquidity. He added that the company has undertaken an in-depth review of operations and ways to enhance business by lowering cost and increasing efficiency.

Sources suggest that the sale of Hudson UK would streamline Just Energy’s operations, enabling the company to limit its geographical focus and concentrate more on core operations. Moreover, by eliminating considerable capital investment in Hudson UK, the sale would improve Just Energy’s liquidity position.

Credible reports cite that, following the sale, Just Energy will receive C$3.2 million at closing while up to approx. C$13.8 million will be paid depending on whether the Department for Business, Energy and Industrial Strategy (BEIS) or the Office of Gas and Electricity Markets (Ofgem) reinstate the capacity market payments in the United Kingdom within a defined timeframe.

However, until completion of the sale, both companies will continue to operate independently. Whereas, on completion of the deal, Hudson UK will operate as a wholly owned subsidiary of Shell Energy Retail Limited.

Sources cite that Just Energy believes Shell to be a strong partner for its UK-based customers on account of its extensive renewable offerings and strong customer service.

As for Hudson UK, it supplies gas to around 200,000 UK-based customers and 100% renewable electricity through Green Star Energy. The company also provides 100% renewable electricity and bespoke gas contracts to around 2000 commercial customers.

Source Credit - https://investors.justenergy.com/news-releases/news-release-details/just-energy-announces-sale-uk-operations-identifies-further-c20

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About Author

Anchal Solanki

Anchal Solanki    

A civil engineer by qualification, Anchal Solanki forayed into the domain of content writing in the midst of her graduation, embarking on the career path of a successful freelancer. Equipped with a short-term experience in market research, Anchal currently writes news...

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