Mast Energy Developments PLC - developer of reserve power generations plants - Buys nine megawatt gas-powered standby generation facility based in Derbyshire. Mast will pay a total of GBP2.5 million as part of the sale and purchase agreement, comprising an initial GBP1.5 cash payment and deferred consideration of GBP1 million to be paid in two equal tranches, 8 months and 12 months from the date of completion. Pyebridge Power facility will generate "immediate revenue", Mast highlights.
Kibo Energy PLC, which holds a 55% stake in Mast, notes Pyebridge is forecast to project around a 21% internal rate of return over the life of the asset.
Louis Coetzee, Mast non-executive chair comments: "The completion of the Pyebridge sale and purchase agreement is a first demonstration of the commercial and technical benefits derived from an installed and commissioned power generating facility and is our first fully operational site in Mast's growing portfolio of flexible power plants in the UK."
Current Mast Energy stock price: 12.22 pence
Year-to-date change: down 2.2% from 12.5p April IPO price
Current Kibo stock price: untraded at ZAR8.00 in Johannesburg; 0.21p, down 2.6% in London
Year-to-date change: up 15% in Johannesburg; up 9.0% in London
By Will Paige; willpaige@alliancenews.com
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Kibo Energy (KIBO)
Mast Energy. (MAST)