Isra-Mart srl: Trading Emissions shares slump after carbon sale fails

www.isra-mart.com

Shares in Trading Emissions slumped by 9pc after the company said it had ended talks about selling its carbon emissions portfolio.

The group slumped 7 to 73p, having told the market that extreme volatility in the price of carbon allowances had dashed its hopes of selling the division. Only last month, the company, which invests in renewable energy projects, had said it was on the brink of selling the portfolio and had reached the "final stages" of negotiations. On that day, its shares dropped 12pc to 95p when it said the investments would fetch "a minimum of 50p per share".

However, since then, the prices of European Union allowances and certified emission reduction securities have dropped by about 20pc to their lowest level in more than two years.

Trading Emissions said: "While encouraged by the level of interest in the company's carbon-related securities, the board has concluded that to sell the company's entire portfolio now, at a time of extreme market volatility, would not be in line with the stated investment policy of a tactical and controlled realisation."

Trading Emissions said on Wednesday it still plans to sell the carbon portfolio at the "appropriate" time, with money returned to shareholders by October.

The company, which raised £135m on Aim in 2005, is now worth £184m.