Chariot, the Africa-focused transitional energy company, has signed share purchase agreements (SPAs) for the acquisition of the business of Africa Energy Management Platform (AEMP) for consideration of up to US$2mn payable primarily in Chariot Ordinary Shares
This represents up to 4% of Chariot’s enlarged share capital.
AEMP is a renewable and hybrid energy project developer, with an ongoing strategic partnership with Total Eren, one of the leading global players in renewable energy, predominantly in solar and wind. Total has a shareholding of about 30% (directly and indirectly) in Total Eren. AEMP and Total Eren (the “Partners”) are looking to provide clean, sustainable, and more competitive energy to operational mines in Africa, which represents a giant, largely untapped market in which Chariot’s management has numerous high-level contacts. Transaction highlights include:
Pipeline of 500MW of African mining power projects:
• The Partners are in discussions with African mine operators with an aggregate requirement for 500MW of power for whom the Partners could provide viable energy solutions.
• Chariot’s management is also looking to leverage its other significant business interests in multiple mining operations across Africa to rapidly grow the pipeline. The African mining power market is estimated to be around the same size as half of the entire UK power market.
Strategic Partnership with Total Eren:
• Strategic partnership with Total Eren, a global renewable IPP to develop low-risk mining power projects in Africa.
• AEMP has a right to invest in up to 15% project equity at cost in projects developed by the Partners. This provides multiple value accretive opportunities for re-investment of anticipated material cashflows provided by Chariot’s Transitional Gas Project, the Anchois Development in Morocco.
• AEMP currently recovers its overhead costs as part of the partnership providing an immediate post-acquisition revenue stream to finance ongoing costs.
Adonis Pouroulis, acting CEO of Chariot, commented, “I am delighted to announce the acquisition of AEMP. We believe this move will provide Chariot with numerous further valuable, exciting and scalable projects that complement and build on our value accretive Transitional Gas project in Morocco. The acquisition also plays to Chariot’s and its managements’ significant experience and other business interests within the mining sector in Africa. We are already well advanced in adding to the project pipeline and we look to forward to announcing these when appropriate.”
