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Ipsa says sale of last two turbines still going ahead

14th January 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Shares in power group Ipsa jumped over 7% on Monday after the group reiterated its commitment to close the sale of its last two turbines as soon as possible.

The group was attempting to sell its remaining two Siemens Westinghouse 701 DU gas turbines to Malaysian power development company Iris Eco Power for $31-million, allowing the group to repay its creditors.

However, Iris Eco Power, in December, sought an extension of the sale agreement, which Ipsa’s creditors have not yet agreed to formalise.

In response to a recent movement in the group’s share price the company issued a statement reaffirming efforts to complete the sale.

Ipsa initially said it would sell the two 701 DU gas turbines to Lezayre Holdings, but reported that the contract had expired owing to delays.

The company sold the other two of its four gas turbines, which it initially acquired for a power project at Coega, to Bright Day, in January 2012, for $35-million.

Edited by Creamer Media Reporter

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