(Sharecast News) - Wiring accessories, EV chargers, LED lighting and portable power supplier Luceco, announced a significant investment in eEnergy Group on Wednesday.
The AIM-traded firm said it would subscribe for 35 million new ordinary shares in eEnergy, amounting to £1.75m.
It said eEnergy specialises in providing net-zero energy services, helping organisations to achieve their net-zero emissions goals by addressing energy wastage and transitioning to cleaner energy sources without the need for upfront investments.
eEnergy operates through two divisions - energy services and energy management and is currently in exclusive negotiations to sell its energy management division after receiving multiple offers.
The energy services division of eEnergy partners frequently with Luceco as a technology provider, offering organisations energy efficiency, renewable energy generation, and EV charging solutions.
In the 12 months ended 30 June, the energy services business recorded revenues of £19.5m, reflecting 87% year-on-year growth.
Luceco said its investment entailed subscribing for 35,078,000 new shares in eEnergy for 5p per share, totalling £1.75m.
The investment secured around 9% of eEnergy's enlarged issued share capital and granted Luceco the right to nominate a board member.
It said completion remained contingent on the admission of the subscription shares to trading on AIM.
"Energy efficiency has been an important driver of growth for Luceco through our LED lighting category," said chief executive officer John Hornby.
"More recently we have invested in EV charging because we anticipate that this, and the clean energy category more generally, will be an important growth area."
Hornby said eEnergy's energy services division was already an important customer for the company's lighting projects business.
"As the economy decarbonises it is well positioned to become an increasingly relevant channel in the non-residential segment, and we look forward to supporting the growth of eEnergy and exploring the potential for increased cooperation between our businesses."
At 1253 GMT, shares in Luceco were up 1.91% at 107.53p.
Reporting by Josh White for Sharecast.com.
Luceco (LUCE)