Shares of eEnergy PLC (AIM: EAAS) experienced a significant increase of over 40% following the acquisition of its shares by Luceco PLC (LSE: LUCE), a provider of LED lighting, for £1.75 million.
The price of eEnergy’s shares climbed to 5.6p on Wednesday morning, a notable rise from the previous day’s closing price of 4.2p.
Luceco, known for its electrical products including wiring, electric vehicle chargers, and LED lighting, announced its subscription to over 35 million new ordinary shares in eEnergy at 5p per share, totalling an investment of £1.75 million.
With this move, Luceco now owns roughly 9% of eEnergy’s issued share capital post-expansion and has secured the right to appoint a director to eEnergy’s board.
In a public statement, Luceco expressed optimism about the growth potential in clean energy technologies, viewing it as a chance to broaden its product range into emerging markets.
eEnergy, which uses Luceco’s LED lighting solutions, operates two main business units: one focused on energy services and the other on energy management, serving clients in the public sector and healthcare, including the NHS.
For the year ending in June 2023, eEnergy’s energy services division reported revenues of about £19.5 million, which is an 87% increase from the previous year.
John Hornby, the CEO of Luceco, commented on the investment, noting eEnergy’s significance as a customer for their lighting projects. He emphasized eEnergy’s advantageous position in the market, especially as the economy shifts towards decarbonization, making it a key player in the non-residential sector.
