The planned sale of Sark Electricity looks set to fall through just weeks before the deal is due to be signed off.
Alan Witney-Price, Managing Director and owner of Sark Electricity, has blamed Chief Pleas for the deal collapsing accusing the government of trying to block the sale.
He said Island Power, which is due to buy SEL in early July, has not yet completed the Sale and Purchase Agreement. That document is essential to the sale process he said.
Mr Witney-Price said Chief Pleas have made it “impossible” for him to complete the deal with Island Power.
“Despite specific assurances from Chief Pleas representative to SEL, Mr Andrew Ozanne that Chief Pleas would not do anything that would interfere with those negotiations or prejudice outcomes, as I feared would happen, I have been advised by Island Power that Chief Pleas has simply acted in bad faith and, in doing so, has effectively blocked any pathway to completion of the sale of SEL to Island Power. Island Power has an option in place until 3 July but absent a binding SPA this date is meaningless.
“This has made, for the second time, any transaction with Island Power impossible to complete. While sympathetic to the reasoning behind Island Powers decision not to progress with the SPA at this stage, I have been absolutely clear with Island Power that there will be no renegotiation of terms with them on this transaction having already burnt 8 months on their approach; an approach that clearly does not have Conseillers support despite the majority of Sark residents being in favour of not borrowing money to buy something that local residents can own for free.”
Mr Witney-Price believes Chief Pleas wants to buy SEL itself, which he says will cost Sark residents themselves more money in the long run.
He has also said he is now committed to selling the utility but he won’t bow down to “bullies”.
“I will not simply give the company away purely because individuals have abused me, my family and my predecessor for approaching nearly twenty years. I don’t like bullies. It is market value, plus a compulsory purchase premium to Chief Pleas, or no sale,” he said.
Mr Witney-Price said he remains open to sensible offers to buy the utility, with a short deadline in the hope of a sale being agreed quickly.
“I have written today to all previously interested parties, and I invite any new bidders to make themselves known immediately also; this includes Chief Pleas.
“All have been invited to make a bid by 30 June. If an acceptable replacement to Island Power can be identified, then all well and good.
“However, it should be noted that SEL was not on the market when Island Power approached me in November last year. I am happy to retain SEL and simply deliver on my original investment plans. If it comes to pass that Chief Pleas is dissolved in the coming months then my life can only get easier under Guernsey politicians who are policy and not personality driven.”