Shares of EQTEC, the gasification technology company, soared on Wednesday following the announcement of a significant deal. The company has agreed to sell 95% of Grande-Combe SAS, the project company responsible for the France Market Development Centre gasification project, to French infrastructure owner and utility company, Idex Group.
Under the terms of the share purchase and shareholder agreement, EQTEC will receive a fixed consideration of 750,000 euros ($825,788) and could potentially earn up to an additional EUR15 million in fees. Despite selling the majority stake, EQTEC will retain a 5% interest that does not require any financial investment.
In addition to the fixed consideration, EQTEC will be eligible for extra payments of up to EUR750,000 until the center is fully commissioned, contingent on performance. The company will also receive fees for engineering services, equipment, commissioning, and licensing from the final quarter of 2024 to the first quarter of 2025, which is expected to total approximately EUR15 million.
This deal marks another success for EQTEC, as it follows a previous contract win with Idex in March. The two companies were awarded a project by the Limoges Metropole in Nouvelle-Aquitaine, France, to commission a mixed waste-fueled power plant.
Chief Executive David Palumbo expressed his optimism about the future prospects with Idex, stating, “We believe this deepening relationship will result in more plants in France in years to come.”