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Genesis Energy to soon choose company to build plant in Spain

Genesis Energy, a Hungarian company that is building solar-panel plants in Hungary, Spain and Singapore, expects to select the company to build its plant in Spain, Genesis board of directors member Damian Greco said at the company's EGM on Monday.

Four companies are bidding to build Genesis Energy's solar-panel plant in Spain, which the company said would require €40 million-€50 million of its own capital. Greco said that Genesis Energy currently has access to a portion of the previous sum.

Construction of the plant is expected to begin one week after Genesis Energy chooses a builder and to be completed in a year and a half.

Genesis Energy announced on October 13 that it had raised share capital by HUF 666.66 million (€2.48 million), a condition that Genesis Energy defined in July as a stipulation for the sale of the company to Denver-based Cogenco International.

On October 5, Genesis Investment Funds, which owns more than 44% of Genesis Energy, said that the Genesis Energy board would propose at Monday's meeting taking steps to wind up the company as soon as possible following its sale to Cogenco International. These steps include changing the boards, cutting management and requesting that Genesis Energy founder Gábor Rényi resign from his post as CEO.

Genesis Energy said on October 12 that shareholders purchased 1,333,333 ordinary Genesis Energy shares, worth a total of €4 million in a private placement, the company said on the website of the Budapest Stock Exchange on Monday evening. The shareholders paid in the price of the new shares. Genesis Capital Management, which had underwritten the private placement, subscribed 853,524 shares and Acquisition Pro, a company of Rényi, subscribed 479,809 shares.

In the subscription extended twice and ending on October 12, Genesis Energy offered 566,666-1,666,660 new shares, of HUF 500 face value each, at €3 per share or HUF 809 at the current exchange rate.

Genesis Energy shares trade in the "B" Category at the Budapest Stock Exchange. (MTI-Econews)