VivoPower and Future Automotive Solutions and Technologies (FAST) Pro Forma US$1.13bn merged entity to be headquartered in the UK in an effort to qualify for $21bn government clean energy investment programmes
VivoPower International Plc (Nasdaq: VVPR) has announced plans to merge with Future Automotive Solutions and Technologies (FAST), creating a US$1.13bn pro forma entity headquartered in the UK. This strategic move aims to capitalize on the UK government's $21bn clean energy investment programmes, including the Great British Energy unit ($11bn) and National Wealth Fund ($9.7bn). The merger, subject to conditions, will result in a company structure with 49% ownership by VivoPower shareholders and 51% by FAST shareholders. The UK's recent policy changes, including the reinstatement of a 2030 ban on diesel and petrol vehicles, make it an attractive market for hydrogen companies. This merger aligns with the UK's goal of achieving net-zero carbon emissions in electricity generation by 2030 and positions the combined entity to potentially benefit from significant government incentives in the clean energy sector.
VivoPower International Plc (Nasdaq: VVPR) ha annunciato piani per fondersi con Future Automotive Solutions and Technologies (FAST), creando un'entità pro forma da 1,13 miliardi di dollari USA con sede nel Regno Unito. Questo passo strategico mira a capitalizzare sui programma di investimento in energia pulita da 21 miliardi di dollari del governo del Regno Unito, inclusa l'unità Great British Energy (11 miliardi di dollari) e il National Wealth Fund (9,7 miliardi di dollari). La fusione, soggetta a condizioni, comporterà una struttura aziendale con il 49% di proprietà degli azionisti di VivoPower e il 51% degli azionisti di FAST. I recenti cambiamenti di politica del Regno Unito, inclusa la reinstaurazione di un divieto nel 2030 sui veicoli a diesel e benzina, rendono il mercato attraente per le aziende che si occupano di idrogeno. Questa fusione è in linea con l'obiettivo del Regno Unito di raggiungere emissioni di carbonio nette zero nella produzione di elettricità entro il 2030 e posiziona l'entità combinata per potenzialmente beneficiare di significativi incentivi governativi nel settore dell'energia pulita.
VivoPower International Plc (Nasdaq: VVPR) ha anunciado planes para fusionarse con Future Automotive Solutions and Technologies (FAST), creando una entidad pro forma de 1,13 mil millones de dólares US con sede en el Reino Unido. Este movimiento estratégico tiene como objetivo capitalizar los programas de inversión en energía limpia de 21 mil millones de dólares del gobierno del Reino Unido, incluyendo la unidad Great British Energy (11 mil millones de dólares) y el Fondo Nacional de Riqueza (9,7 mil millones de dólares). La fusión, sujeta a condiciones, resultará en una estructura de empresa con 49% de propiedad por parte de los accionistas de VivoPower y 51% por parte de los accionistas de FAST. Los recientes cambios de política en el Reino Unido, incluida la restauración de una prohibición de vehículos diésel y de gasolina para 2030, lo convierten en un mercado atractivo para las empresas de hidrógeno. Esta fusión se alinea con el objetivo del Reino Unido de lograr emisiones de carbono netas cero en la generación de electricidad para 2030 y posiciona a la entidad combinada para potencialmente beneficiarse de importantes incentivos gubernamentales en el sector de energía limpia.
VivoPower International Plc (Nasdaq: VVPR)는 Future Automotive Solutions and Technologies (FAST)와 합병 계획을 발표하며, 영국에 본사를 둔 11억 3천만 달러 규모의 프로 포르마 엔티티를 창출합니다. 이 전략적 움직임은 영국 정부의 210억 달러 클린 에너지 투자 프로그램을 활용하는 것을 목표로 하며, 여기에는 Great British Energy 유닛(110억 달러)과 National Wealth Fund(97억 달러)가 포함됩니다. 합병은 조건에 따라 진행되며, VivoPower의 주주가 49%, FAST의 주주가 51%를 소유하는 회사 구조를 초래합니다. 영국의 최근 정책 변화, 특히 2030년까지 디젤 및 휘발유 차량 금지 조치를 다시 시행한 것은 수소 기업에 매력적인 시장이 되고 있습니다. 이러한 합병은 2030년까지 전력 생산에서 탄소 배출 제로 달성을 목표로 하는 영국의 목표에 부합하며, 결합된 엔티티는 클린 에너지 분야에서 중요한 정부 인센티브의 혜택을 받을 수 있도록 합니다.
VivoPower International Plc (Nasdaq: VVPR) a annoncé des plans pour fusionner avec Future Automotive Solutions and Technologies (FAST), créant une entité pro forma de 1,13 milliard de dollars US ayant son siège au Royaume-Uni. Ce mouvement stratégique vise à tirer parti des programmes d'investissement dans l'énergie propre de 21 milliards de dollars du gouvernement britannique, y compris l'unité Great British Energy (11 milliards de dollars) et le National Wealth Fund (9,7 milliards de dollars). La fusion, soumise à des conditions, entraînera une structure d'entreprise avec 49% de propriété par les actionnaires de VivoPower et 51% par les actionnaires de FAST. Les récents changements de politique au Royaume-Uni, y compris la réinstauration d'une interdiction des véhicules diesel et à essence d'ici 2030, en font un marché attrayant pour les entreprises de l'hydrogène. Cette fusion est alignée avec l'objectif du Royaume-Uni d'atteindre des émissions nettes nulles de carbone dans la production d'électricité d'ici 2030 et positionne l'entité combinée pour bénéficier potentiellement d'incitations gouvernementales significatives dans le secteur de l'énergie propre.
VivoPower International Plc (Nasdaq: VVPR) hat Pläne angekündigt, sich mit Future Automotive Solutions and Technologies (FAST) zusammenzuschließen, um eine pro forma Entität im Wert von 1,13 Milliarden US-Dollar mit Sitz im Vereinigten Königreich zu schaffen. Dieser strategische Schritt zielt darauf ab, von den 21 Milliarden US-Dollar Investitionsprogrammen für saubere Energie der britischen Regierung zu profitieren, darunter die Einheit Great British Energy (11 Milliarden US-Dollar) und der National Wealth Fund (9,7 Milliarden US-Dollar). Die Fusion, die an Bedingungen geknüpft ist, wird zu einer Unternehmensstruktur führen, bei der 49% im Besitz der Aktionäre von VivoPower und 51% im Besitz der Aktionäre von FAST sind. Die jüngsten politischen Veränderungen im Vereinigten Königreich, darunter die Wiederherstellung des Verbots von Diesel- und Benzinfahrzeugen bis 2030, machen es zu einem attraktiven Markt für Wasserstoffunternehmen. Diese Fusion steht im Einklang mit dem Ziel des Vereinigten Königreichs, bis 2030 Netto-Null-CO2-Emissionen in der Stromerzeugung zu erreichen, und positioniert die kombinierte Einheit, um potenziell von erheblichen staatlichen Anreizen im Bereich der sauberen Energie zu profitieren.
- Merger creates a substantial US$1.13bn pro forma entity
- Potential access to UK government's $21bn clean energy investment programmes
- Strategic positioning in the growing UK clean energy market
- Alignment with UK's 2030 net-zero carbon emissions goal
- VivoPower shareholders to retain 49% ownership valued at $556m
- Transaction subject to completion of several conditions precedent
- Merger agreement is currently non-binding
- Potential dilution for current VivoPower shareholders
- Execution risks associated with merging two companies
Insights
The proposed merger between VivoPower and FAST, creating a
Key financial aspects to consider:
- The pro forma structure values VivoPower shareholders' 49% stake at
$556 million , a substantial premium to the current market cap of$6 million . - FAST shareholders will own 51%, valued at
$578 million . - Access to the UK's Great British Energy unit (
$11 billion ) and National Wealth Fund ($9.7 billion ) could provide significant capital for growth and expansion.
However, investors should note that the deal is subject to several conditions and is currently non-binding. The substantial valuation increase and reliance on government initiatives introduce both opportunities and risks that warrant careful consideration.
The UK's renewed commitment to clean energy and accelerated decarbonization goals create a favorable environment for companies like the VivoPower-FAST merged entity. Key policy points include:
- Reinstatement of the 2030 ban on diesel and petrol internal combustion engine vehicles, accelerated from 2035.
- Net-zero carbon emissions target for electricity generation by 2030.
- Establishment of the Great British Energy unit and National Wealth Fund, with green hydrogen as a priority investment area.
This policy landscape offers significant opportunities for hydrogen and clean energy companies. However, the success of these initiatives depends on political stability and consistent policy implementation. Investors should monitor the UK's political climate and any potential shifts in energy policy that could impact the merged entity's strategic positioning and access to government support.
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. 25, 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
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.
Contact
Shareholder Enquiries
shareholders@vivopower.com
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