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American investor offers to inject $42 mln into Genesis Energy Spain unit

Genesis Energy, a Hungarian company that is building solar panel plants in Hungary, Spain and Singapore, said it received a letter of intent from an American investor on injecting $42 million into its unit in Spain.

The transaction, which the board of directors is examining, would involve the transfer of ownership of the entire unit, while Genesis would get shares in an American company. The cash injection would allow the unit to accept a €20 million state grant and restart work on the solar panel plant in Spain, Genesis Energy said.

Genesis Energy said it was unable to convert its financial investments into cash in time or collect its dues from connected units. The closing of the financing deal for its first solar power plant fell far behind schedule and preparations for the other two plants were delayed as well.

Further announcements on the possible transaction will be made, and the issue will be put to shareholders at a general meeting in April. (MTI - Econews)