Kibo Energy completes UK-based flexible power acquisition
The company acquires a 60 percent shareholding in Mast Energy Developments, a private UK registered company.
Africa-focused energy company Kibo Energy has completed the acquisition of a 60 percent shareholding in Mast Energy Developments (MED), the company announced on Tuesday.
MED is a private UK registered company targeting the development and operation of flexible power plants to service the reserve power generation market. MED’s business strategy is to acquire and develop a portfolio of small-scale power generation assets. Kibo Energy, which is listed on the JSE and London Stock Exchange, said it will issue 5.7 million of its new ordinary shares at a price of 5.25 pence to the existing MED shareholders to settle the acquisition.
Kibo Energy expects the shares to be admitted on the AIM market of the London Stock Exchange for trading on October 19. After the acquisition, Kibo Energy will have 640 million ordinary Shares in issue.
“This acquisition provides Kibo with the realistic possibility of near-term revenue generating assets and enables us to combine our knowledge of the power generation market both in mature and emerging markets,” said Louis Coetzee, CEO of Kibo Energy. “There is a distinct short-term revenue generating potential in the UK, which is positive for Kibo and importantly all early stage royalties payable to the sellers will be reinvested in Kibo ordinary equity,” Coetzee added.
Various “shovel ready” sites have already been identified in the UK, capable of sustaining gas-fired power generators and ancillary structures from 20 MW upwards. The sites have full planning permission and permitting in place, long-term lease agreements, grid and gas connection offers and positive feasibility studies, pertaining to technical and commercial viability.
Kibo Energy aims to address the acute power deficit in sub-Saharan Africa, which is one of the primary impediments to economic development in the region.
The company is developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project in Tanzania; the Mabesekwa Coal Independent Power Project in Botswana; and the Benga Independent Power Project in Mozambique.