Renewable energy-focused development company Kibo Energy has agreed to acquire a portfolio of clean energy projects across Europe and Africa, with a total generation capacity of 20GW from Swiss company ESGTI in a deal worth €400m.
In line with this, both parties have signed a binding term sheet. The proposed transaction is being arranged by asset management firm Aria Capital Management.
To be facilitated through a reverse takeover (RTO), the transaction will involve 36 development projects located across 15 countries. They range from early-stage to under-construction projects which are expected to be commissioned within six years.
These encompasses wind, solar, agri-photovoltaics (PV), and technology developments.
In line with the RTO, Kibo Energy will also undergo a share consolidation at a ratio of one new share for every 5,000 existing shares. Besides, the RTO will be accompanied by a capital raise of €30m.
The capital raise will be organised by ESGTI through the appointment of placing agents to secure investment by third-party institutional investors.
The transaction is contingent upon several conditions, including mutual due diligence, board and shareholder approvals as well as regulatory approvals.
Another additional condition of the acquisition involves Kibo Energy’s divestiture of its wholly owned subsidiary, Kibo Mining Cyprus (KMCL) to Aria Capital Management.
KMCL holds Kibo Energy’s coal, waste-to-energy, and biofuel assets in sub-Saharan Africa. The mining subsidiary has reported significant losses, and the sale is expected to help reduce Kibo Energy’s debt.
Kibo Energy’s 19.52% shareholding in Mast Energy Developments (MED), currently held through KMCL, will not be included in the sale. MED specialises in the development and operation of flexible power plants to service the reserve power generation market in the UK.
Dual listed on the AIM market on the London Stock Exchange and the AltX on the Johannesburg Stock Exchange, Kibo Energy focuses on projects in the areas of sustainable energy, reserve power and long-duration energy storage.
