In Strategic Review Update, Just Energy Says It Is, "No Longer In Active Discussions Regarding A Specific Transaction"
Continues To Explore Alternatives, Certain Asset Sales
Also Provides Update On COVID-19
April 9, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Just Energy Group Inc. ('Just Energy' or the 'Company') today provided an update on its previously announced strategic review process, "which has taken into account the impact of COVID-19 on the Company and the markets more generally," the Company said
"The Company is no longer in active discussions regarding a specific transaction at this time, but is continuing to explore and evaluate alternatives under the strategic review process, including additional cost reduction and optimization strategies, improving efficiencies and eliminating redundancies, sales of certain assets, improvements to liquidity and leverage, refinancings and the sale of the entire business. Such efforts are being pursued with the goal of strengthening the Company’s financial foundation for the long-term benefit of Just Energy and its stakeholders as the Company continues to face and respond to the realities of the COVID-19 pandemic," Just Energy said
"The Company does not intend to comment further with respect to the strategic review unless and until it determines that additional disclosure is appropriate in the circumstances and in accordance with the requirements of applicable securities laws. The Company cautions that there is no assurance that a transaction will result from the strategic review," Just Energy said
"Since the commencement of the strategic review on June 6, 2019, the Company has taken a number of actions to improve and optimize the Company’s business and refine its geographic footprint, including the sale of its U.K. operations, Irish business and certain other assets. The Company also cut approximately $60 million in costs in fiscal 2020, net of costs associated with severance and the strategic review process," Just Energy said
Just Energy also provided a business update relating to the impact of the COVID-19 pandemic on its business, which it has been closely monitoring and assessing.
"The Company has taken a number of steps to ensure the health and safety of its employees, customers and communities, including suspending door-to-door selling, in-store retail partnerships and all business travel, as well as requiring employees to work from their homes unless required for business continuity," Just Energy said