Financial and Tax Implications of the Deal
While the deal is valued at $193 million, Ithaca anticipates paying approximately $140 million after accounting for adjustments. The company will also inherit:
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$215 million in tax losses from JAPEX UK
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$105 million in energy profit levy losses under U.K. tax regulations
This move not only expands Ithaca’s asset base but also provides significant tax benefits, further strengthening its financial positioning in a complex energy market.
JAPEX Exits a Market of Uncertainty
JAPEX, headquartered in Tokyo, first acquired its 15% stake in the Seagull project in 2014. However, the company cited mounting costs, the aftermath of the COVID-19 pandemic, and the volatile U.K. tax environment as key reasons for its decision to exit.
“The project has become costly since the pandemic, while U.K. levies and taxes have increased uncertainty about the business environment,” JAPEX stated.
This highlights the shifting dynamics in Britain’s energy sector, where government policies and economic pressures are forcing international players to reassess their positions.
