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Simec Atlantis says GFG-backed investor facing 'purported' receivership

May 18 (Reuters) - London-listed Simec Atlantis Energy said on Tuesday that its largest shareholder, a company that is part of Sanjeev Gupta’s GFG Alliance Group, is facing “purported” receivership proceedings.

Simec Atlantis, a sustainable energy generation company which is listed on London’s junior AIM stock exchange, said it had received correspondence in relation to the “purported appointment of receivers” over all of the shares of its major shareholder, SIMEC UK Energy Holdings Limited (SUEH).

SUEH is part of GFG Alliance and holds a 43% stake in Simec Atlantis, according to Refinitiv Data. Simec Atlantis shares were down 20% at 0839 GMT.

A GFG spokesman said in a statement that “GFG Alliance member SIMEC U.K. Energy Holdings Limited has received correspondence purporting to the appointment of receivers to enforce security of its shareholding in the AIM-listed Simec Atlantis Energy Limited (SAE).

“GFG Alliance has informed Simec Atlantis Energy that it is strongly challenging the validity of the disputed appointment and counsel is taking forward a legal defence,” the spokesman said.

“SUEH is a holding company solely for the investment in Simec Atlantis Energy and the disputed appointment of receivers does not extend to the rest of SIMEC Energy group or other members of the GFG Alliance.”

Britain’s Serious Fraud Office said on Friday that it was investigating GFG in a probe that encompasses the conglomerate’s links to collapsed lender Greensill Capital. (Reporting by Rachel Armstrong in London and Muvija M in Bengaluru; Editing by Susan Fenton)

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