(UPDATED) VIVOPOWER AND FUTURE AUTOMOTIVE SOLUTIONS TECHNOLOGIES (FAST) PROFORMA $1.13BN MERGED ENTITY TO BE UK HEADQUARTERED TO QUALIFY FOR $21BN GOVERNMENT CLEAN ENERGY INVESTMENT PROGRAMS
VivoPower International Plc (Nasdaq: VVPR) has announced further details on its proposed merger with Future Automotive Solutions and Technologies (FAST). The combined entity will be headquartered in the UK to qualify for significant UK Government clean energy incentives. The UK Government has allocated a combined budget of US$21bn for clean energy projects through the Great British Energy unit and National Wealth Fund, with green hydrogen as an investment priority.
The merger structure proposes that VivoPower will acquire FAST and issue restricted shares as consideration. Post-merger, VivoPower will remain a UK PLC with 49% owned by VivoPower shareholders and 51% by FAST shareholders. The pro forma combined company is valued at an equity valuation of $1.13bn, with VivoPower's 49% stake valued at $556m and FAST's 51% at $578m. VivoPower insiders and affiliates will commit to a share lock-up in the merged entity.
VivoPower International Plc (Nasdaq: VVPR) ha annunciato ulteriori dettagli sulla sua proposta di fusione con Future Automotive Solutions and Technologies (FAST). L'entità combinata avrà sede nel Regno Unito per qualificarsi per significativi incentivi del governo britannico per l'energia pulita. Il governo britannico ha stanziato un budget combinato di 21 miliardi di dollari per progetti di energia pulita attraverso l'unità Great British Energy e il National Wealth Fund, con l'idrogeno verde come priorità d'investimento.
La struttura della fusione prevede che VivoPower acquisisca FAST e emetta azioni ristrette come corrispettivo. Dopo la fusione, VivoPower rimarrà una PLC britannica con il 49% di proprietà degli azionisti di VivoPower e il 51% di proprietà degli azionisti di FAST. L'azienda combinata pro forma è valutata con un valore patrimoniale di 1,13 miliardi di dollari, con la partecipazione del 49% di VivoPower valutata a 556 milioni di dollari e il 51% di FAST a 578 milioni di dollari. I membri interni e gli affiliati di VivoPower si impegneranno a un lock-up delle azioni nell'entità risultante dalla fusione.
VivoPower International Plc (Nasdaq: VVPR) ha anunciado más detalles sobre su propuesta de fusión con Future Automotive Solutions and Technologies (FAST). La entidad combinada tendrá su sede en el Reino Unido para calificar para importantes incentivos del Gobierno del Reino Unido para energías limpias. El Gobierno del Reino Unido ha asignado un presupuesto combinado de 21 mil millones de dólares para proyectos de energía limpia a través de la unidad Great British Energy y el National Wealth Fund, con el hidrógeno verde como prioridad de inversión.
La estructura de la fusión propone que VivoPower adquiera FAST y emita acciones restringidas como consideración. Tras la fusión, VivoPower seguirá siendo una PLC del Reino Unido con el 49% en manos de los accionistas de VivoPower y el 51% en manos de los accionistas de FAST. La empresa combinada pro forma tiene un valor de capital de 1.13 mil millones de dólares, con la participación del 49% de VivoPower valorada en 556 millones de dólares y el 51% de FAST en 578 millones de dólares. Los miembros internos y afiliados de VivoPower se comprometerán a un bloqueo de acciones en la entidad fusionada.
비보파워 인터내셔널 PLC (Nasdaq: VVPR)는 미래 자동차 솔루션 및 기술(Future Automotive Solutions and Technologies, FAST)과의 제안된 합병에 대한 추가 세부 정보를 발표했습니다. 결합된 법인은 영국에 본사를 두게 됩니다 영국 정부의 청정 에너지 인센티브를 받기 위해서입니다. 영국 정부는 그레이트 브리티시 에너지 유닛과 국가 부유 기금을 통해 청정 에너지 프로젝트에 210억 달러의 예산을 배정했습니다, 녹색 수소가 투자 우선 사항입니다.
합병 구조는 비보파워가 FAST를 인수하고 제한된 주식을 대가로 발행하는 것을 제안합니다. 합병 후 비보파워는 49%는 비보파워 주주가 소유하고 51%는 FAST 주주가 소유하는 영국 PLC로 남아 있게 됩니다. 프로포르마 결합 회사의 가치는 11억 3천만 달러의 자본 가치로 평가됩니다, 비보파워의 49% 지분은 5억 5천 6백만 달러, FAST의 51%는 5억 7천 8백만 달러로 평가됩니다. 비보파워 내부자 및 관계자는 합병된 법인에서의 주식 잠금에 약속할 것입니다.
VivoPower International Plc (Nasdaq: VVPR) a annoncé des détails supplémentaires concernant sa fusion proposée avec Future Automotive Solutions and Technologies (FAST). L'entité combinée sera basée au Royaume-Uni afin de bénéficier d'incitations gouvernementales britanniques significatives pour l'énergie propre. Le gouvernement britannique a alloué un budget combiné de 21 milliards de dollars pour des projets d'énergie propre via l'unité Great British Energy et le National Wealth Fund, avec l'hydrogène vert comme priorité d'investissement.
La structure de la fusion propose que VivoPower acquière FAST et émette des actions restreintes en contrepartie. Après la fusion, VivoPower restera une PLC britannique avec 49 % détenus par les actionnaires de VivoPower et 51 % par les actionnaires de FAST. La société combinée pro forma est évaluée à une valeur d'équité de 1,13 milliard de dollars, la participation de 49 % de VivoPower étant évaluée à 556 millions de dollars et celle de 51 % de FAST à 578 millions de dollars. Les initiés et les affiliés de VivoPower s'engageront à un verrouillage des actions dans l'entité fusionnée.
VivoPower International Plc (Nasdaq: VVPR) hat weitere Einzelheiten zu seiner vorgeschlagenen Fusion mit Future Automotive Solutions and Technologies (FAST) bekannt gegeben. Die kombinierte Einheit wird ihren Sitz im Vereinigten Königreich haben, um sich für erhebliche Anreize der britischen Regierung für saubere Energie zu qualifizieren. Die britische Regierung hat ein kombiniertes Budget von 21 Milliarden US-Dollar für Projekte im Bereich saubere Energie über die Great British Energy-Einheit und den National Wealth Fund bereitgestellt, wobei grüner Wasserstoff als Investitionspriorität gilt.
Die Fusionsstruktur sieht vor, dass VivoPower FAST übernimmt und als Gegenleistung eingeschränkte Aktien ausgibt. Nach der Fusion wird VivoPower als britische PLC bestehen bleiben, mit 49% im Besitz der VivoPower-Aktionäre und 51% im Besitz der FAST-Aktionäre. Das pro forma kombinierte Unternehmen wird mit einer Eigenkapitalbewertung von 1,13 Milliarden US-Dollar bewertet, wobei der 49%-Anteil von VivoPower mit 556 Millionen US-Dollar und der 51%-Anteil von FAST mit 578 Millionen US-Dollar bewertet wird. Insider und Angehörige von VivoPower werden sich zu einem Aktien-Lock-up in der fusionierten Einheit verpflichten.
- Merger with FAST values the combined entity at $1.13bn
- UK headquarters qualifies the company for $21bn in government clean energy incentives
- Green hydrogen is a priority investment for UK government initiatives
- VivoPower shareholders will retain 49% ownership valued at $556m
- The Heads of Agreement for the merger is non-binding
- Transaction is subject to several conditions precedent
- VivoPower shareholders will be diluted to 49% ownership in the combined entity
Insights
The proposed merger between VivoPower and FAST represents a significant strategic move with potentially substantial implications. The $1.13 billion valuation of the combined entity is noteworthy, especially considering VivoPower's current market cap of just
The decision to headquarter in the UK is strategically sound, given the
However, investors should approach this news with caution. The deal is still in the early stages, with a non-binding heads of agreement and several conditions precedent. The
The UK's renewed commitment to clean energy and accelerated timelines for decarbonization create a favorable environment for companies like the proposed VivoPower-FAST entity. The reinstatement of the 2030 ban on internal combustion engine vehicles sales is particularly significant for their hydrogen conversion technology focus.
The establishment of the Great British Energy unit and National Wealth Fund, with a combined budget of
However, the competitive landscape is likely to intensify as more companies vie for these funds. The merged entity's success will depend on its ability to demonstrate technological superiority and commercial viability in the rapidly evolving green hydrogen space. The Bloomberg New Energy Finance analysis suggesting the need for more than double the current investment levels to meet 2030 goals indicates both opportunity and potential funding gaps that the company may need to navigate.
UK remains attractive market for hydrogen companies with significant incentives introduced and announced by UK Government
UK Government clean energy initiatives include establishing Great British Energy unit to be capitalised with US
Priority investment for both Great British Energy unit and National Wealth Fund is scaling up UK green hydrogen sector
VivoPower has been headquartered in UK since 2016
Transaction subject to completion of number of conditions precedent, including closing of Tembo’s previously announced business combination and satisfactory completion of independent third-party opinion
LONDON, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Nasdaq-listed VivoPower International Plc (“VivoPower”, the “Company”) (Nasdaq: VVPR) previously announced that it entered into a strategic heads of agreement (the “Heads of Agreement”) to merge with Future Automotive Solutions and Technologies (“FAST”), a hydrogen conversion technology company headquartered in Canada (together, the “Merger” or the “Transaction”). The Heads of Agreement is exclusive for 90 days but is non-binding.
The Company hereby provides further details on the proposed domicile of the combined entity and the proposed merger structure.
Domicile and Headquarters in the UK
Upon completion of the Transaction, the combined entity intends to remain headquartered in the United Kingdom. This is in an effort to qualify for significant and attractive potential UK Government incentives that have been announced. The incumbent UK Government that was elected in July 2024 has announced that clean energy is one of its top two missions, alongside economic growth. It has re-affirmed a goal of decarbonising the UK’s electricity generation to achieve net zero carbon emissions by 2030 and has re-instated a policy to ban the sale of diesel and petrol internal combustion engine vehicles by 2030. This had previously been deferred to 2035 under the previous UK Government. It has mandated for two investment bodies to be capitalised and tasked with driving investment into clean energy projects and companies, of which green hydrogen is an investment priority. These bodies are the Great British Energy unit and the National Wealth Fund, which have been allocated a combined budget of US
In 2023, Bloomberg New Energy Finance (BNEF) noted that investment in the UK clean energy transition sector increased
Pro Forma Structure
The expected structure of the pro forma combined company following the Merger is set out in the table below.
It is currently proposed that VivoPower will acquire FAST and issue restricted shares in VivoPower as consideration. Following the completion of the merger, VivoPower will remain a UK PLC corporation that is
The Heads of Agreement values the pro forma combined company at an equity valuation of
It is currently proposed that VivoPower will acquire FAST and issue restricted shares in VivoPower as consideration. Following the completion of the merger, VivoPower will remain a UK PLC corporation that is
About VivoPower
Established in 2014 and listed on Nasdaq since 2016, VivoPower is an award-winning global sustainable energy solutions B Corporation company focused on electric solutions for off-road and on-road customised and ruggedised fleet applications as well as ancillary financing, charging, battery and microgrids solutions.
VivoPower’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel covering Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.
About FAST
FAST is a Canadian headquartered hydrogen technology company that focuses on developing technologies that promote the adoption of hydrogen. FAST will be launching several vehicle models powered by hydrogen powered internal combustion engines as well as a conversion platform for gasoline and diesel vehicles to run on hydrogen. FAST has offices and factory facilities in Toronto (Canada), Tokyo (Japan) and Yamagata (Japan).
Forward-Looking Statements
This communication includes certain statements that may constitute “forward-looking statements” for purposes of the U.S. federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterisations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the achievement of performance hurdles, or the benefits of the events or transactions described in this communication and the expected returns therefrom. Forward-looking statements in this press release include statements regarding VivoPower and FAST’s ability to reach a definitive agreement and to complete the merger transaction as set out in the heads of agreement. These statements are based on VivoPower’s management’s current expectations or beliefs and are subject to risk, uncertainty, and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of VivoPower’s business. These risks, uncertainties and contingencies include changes in business conditions, fluctuations in customer demand, changes in accounting interpretations, management of rapid growth, intensity of competition from other providers of products and services, changes in general economic conditions, geopolitical events and regulatory changes, and other factors set forth in VivoPower’s filings with the United States Securities and Exchange Commission. The information set forth herein should be read in light of such risks. VivoPower is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of new information, future events, changes in assumptions or otherwise.
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shareholders@vivopower.com
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