(Alliance News) - Kibo Energy PLC said on Monday it has inked a binding term sheet to acquire a diverse portfolio of renewable energy projects across Europe and Africa from Swiss-registered ESGTI AG for EUR400 million, or around ZAR7.86 billion.
The Galway, Ireland-based company with energy projects in Africa and UK said this proposed deal is a reverse takeover as the price tag is "substantially" larger than Kibo's current market capitalisation.
Kibo has a market capitalisation of GBP1.7 million. Its shares are suspended both in London and Johannesburg.
In line with the reverse takeover, Kibo is required to enlarged its share capital to be readmitted to AIM. A placing to accompany the reverse takeover will have a target raise of EUR30 million.
The transaction is subject to completion of a "mutual" due diligence, board and shareholder approvals, and regulatory clearances.
The assets Kibo plans to buy comprise 36 development projects, spanning 15 countries from early stage to under construction, with a target of 20 Gigawatts generation capacity within six years.
ESGTI specialises in sustainable investments. Kibo Energy PLC holds a 55% stake in the LSE- and JSE-listed Mast Energy Developments PLC.
By Artwell Dlamini, Alliance News reporter
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