- Energi Holdings proposes to acquire a 51% stake in VivoPower's Tembo e-LV subsidiary at a US$200 million enterprise value.
- The new offer increases from the previous US$180 million for 80% of VivoPower's non-affiliated shares.
- VivoPower intends to use the proceeds for debt retirement and possibly return surplus to shareholders.
VivoPower International PLC (VVPR, Financial) announced a revised non-binding proposal from Energi Holdings Limited to acquire a direct 51% controlling stake in its Tembo e-LV subsidiary. The proposal values the entire Tembo entity at an enterprise value of US$200 million, improving upon a previous offer of US$180 million for 80% of VivoPower’s non-affiliated shares.
Energi continues to support Tembo's planned business combination with Cactus Acquisition Corp 1 Limited (CCTS), which is valued at an equity valuation of US$838 million. If the transaction is finalized, Energi plans to integrate its 51% stake into the combined entity while VivoPower will maintain a significant shareholding.
The potential transaction is aimed at financial optimization, with VivoPower planning to use net proceeds primarily for debt retirement. Any excess funds could be returned to shareholders, enhancing shareholder value. This proposal remains subject to due diligence, definitive legal documentation, and the approval of both the board and shareholders.
Investors should note that the proposal is non-binding and significant conditions must be met before the transaction can proceed. The offer reflects Energi’s strategic shift towards directly controlling Tembo, which provides robust electric vehicle solutions across multiple industrial sectors.
