(Alliance News) - Kibo Energy PLC on Friday said it has terminated its intended acquisition of the Victoria Falls Solar Park project in Zimbabwe from Broomfield International Ltd, following due diligence.
During its investigation, the UK and Africa-focused energy project developer found that the project was not completely to its satisfaction, with certain sections requiring further development over a short period of time, and in other instances Broomfield not providing information about the project to Kibo's standards.
Both companies have not been able to reach a counteroffer agreement, presented by Kibo to Broomfield as a result of the foregoing, and the transaction has been cancelled as a result.
In March, Kibo had agreed to acquire the Victoria Falls solar park project for GBP10.0 million.
Kibo Energy's shares have been restored to trading in London, and will now focus its attention and efforts on its existing and new renewable energy projects.
"If transactions do not meet our information or returns requirements it is not appropriate to proceed. This transaction, following our due diligence process which included satisfying the board on the documentation required for the regulatory re-admission and subsequent revised economics, ultimately did not meet our acquisition criteria. We have a robust and well developed renewables transition strategy with strong operational momentum, focussed on the accelerated development of our existing renewable and clean energy project portfolio," said Chief Executive Officer Louis Coetzee.
Shares in Kibo Energy were up 3.1% at 0.16 pence on Friday in London, while its Johannesburg shares remain suspended.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Kibo Energy (KIBO)