TIDMKIBO
RNS Number : 0469B
Kibo Energy PLC
29 September 2022
Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
('Kibo' or 'the Company')
Dated: 29 September 2022
Kibo Energy PLC ('Kibo' or the 'Company')
Kibo Advances Corporate Strategy with Strategic IPO Spinout
Kibo Energy PLC (AIM: KIBO; AltX: KBO), the
renewable-energy-focused development company, is pleased to
announce that the Company is proceeding with a proposal for an
Initial Public Offering ('IPO') to be named Ultimate Sustainable
Energy Ltd ('USE') in advancing its Corporate Strategy towards
significant renewable/clean energy developer status. The Company
will furthermore seek admission to the Alternative Investment
Market ('AIM') of the London Stock Exchange ('LSE') for the IPO.
The IPO will seek to raise sufficient funds to develop the
Company's portfolio of renewable/clean energy generation projects,
thereby supporting the Company's strategic intent to significantly
advance and accelerate the development and execution of its
sustainable, renewable energy strategy.
Highlights:
-- Kibo's renewable/clean energy generation projects to be
listed on AIM as a new company named USE by Q4 2022/Q1 2023
-- Post-admission, Kibo expects to hold a significant majority
interest of 75% in USE, maintaining a strategic interest post the
initial fundraise and admission, to ensure continued upside from
future developments
-- Admission seeks to capitalise on strategic growth and funding opportunities identified in the renewable/clean energy generation market
-- Anticipated fundraise of c. GBP7-10 million for USE to take
place alongside admission - funds raised will be used to advance
the short- to medium-term project development of a portfolio of
renewable/clean energy generation projects to achieve financial
close
-- Projects currently earmarked for inclusion in the IPO portfolio are:
o Current waste-to-energy projects in South Africa and the
UK
o All biofuel projects, inclusive of utility-scale projects in
Tanzania, Botswana and Mozambique (Note: Projects in Tanzania,
Botswana and Mozambique refer to the historic coal-power projects
currently the subject of active investigation for conversion into
renewable energy projects by utilising biofuel)
-- An admission document for USE will be published as part of the listing process.
CEO of Kibo Energy, Louis Coetzee, says: "This is an exciting
time for the growth of Kibo Energy, with this IPO unlocking the
true value and potential of the Company's sustainable, renewable
energy assets. This includes two waste-to-energy projects in South
Africa, the first of which is a 2.7 MW facility in Gauteng and the
second which comprises a target of 20 MW, and the Southport project
in the United Kingdom of 10 MW electric power with 5.5m m(3) biogas
(i.e., green gas) plus a planned 2 MW battery storage. Further to
this, the Company is in the advanced stages of disposing of its
coal assets while retaining the associated energy projects that
target the innovative biofuel technology on which the Company has
carried out extensive work over the past few months (see RNS dated
25 August 2022).
"The market opportunities, government support and technical
innovation in both South Africa and the UK are evolving and are at
the ideal stage to position USE, and thus Kibo, as influential
innovators in the renewable/clean baseload energy generation
sector. Most notably, Kibo will retain a controlling interest (c.
75%) in USE that will allow shareholders to benefit from future USE
developments while attracting new investor bases, including impact
investors seeking companies that prioritise ESG outcomes. Progress
on the development of USE's project portfolio is further expected
to have a positive social, environmental and economic impact on the
communities where it operates, and we look forward to updating the
market in this regard and on what we believe are very robust
financials underpinning the USE IPO-portfolio as well as potential
value distribution opportunities to Kibo's shareholders."
Impact of Admission on Kibo Strategy
As per the Company RNS dated 19 April 2021, Kibo's primary
strategic focus remains the acquisition and development of a
portfolio of sustainable, renewable energy assets to capitalise on
the global renewable/clean energy revolution. With the available
market opportunities, government support and technical innovation
in renewable/clean energy in South Africa and the United Kingdom,
the Company believes this is the ideal time to position itself as
an influential leader in the sector. This is evidenced by Kibo's
large knowledge base and experience in the renewable energy sector,
developed in recent years through its renewable energy solution and
Long Duration Energy Storage('LDES') solution, which will also be
used for integration with and planned transformation of its current
large utility fossil fuel-based projects into renewable/clean
energy projects. Furthermore, the planned admission will provide
strategic growth and development opportunities for both Kibo and
USE and will enable each company to focus on and deliver its
primary strategic objectives and clearly defined core business.
The admission of USE will result in the following key
advantages:
-- Greater visibility on the valuation of Kibo's strategic
portfolio of assets, which also includes c. 21% interest in Katoro
Gold PLC ('Katoro') and 61.27% in Mast Energy Developments PLC
('MED');
-- Visibility for USE and thus Kibo, as a leading innovator in
the renewable/clean baseload energy generation sector;
-- Greater investor diversification and an opportunity to target
new investor bases, such as impact investors seeking companies that
prioritise environmental, social and governance ('ESG') outcomes,
and those less interested in African risk-reward opportunities;
-- An opportunity to raise short- to medium-term development
capital requirements from the proposed fundraise, which will
generate USE's first revenue stream within 18 months; and
-- Synergistic growth opportunities with Kibo's core
renewable/clean energy projects in South Africa and the UK.
Background and Commercial Rationale for Admission
The USE business strategy is to acquire, develop and operate a
comprehensive portfolio of renewable/clean baseload energy
generation projects, exploiting the global step-change towards
renewable/clean energy. Kibo's current projects to be included in
USE's IPO portfolio are:
-- waste-to-energy ('WTE') and alternative and renewable/clean
energy generation projects in South Africa and the UK (c. 25
MW);
-- the Company's existing three utility-scale baseload
generation projects in Botswana, Mozambique and Tanzania (c. 900 MW
in aggregate) on the basis of the planned transformation of these
into renewable/clean energy projects as discussed above.
Kibo will retain the remainder of its project portfolio, which
includes:
-- exclusive rights to long-term energy storage technology and
solutions via the Enerox GmbH ('CellCube') Framework Agreement
('FA') and associated LDES projects;
-- majority interest in National Broadband Solutions ('NBS'),
which has the exclusive right to a portfolio of long-duration
energy storage projects in South Africa (RNSs dated 30 May 2022 and
7 July 2022);
-- 61.27% interest in Mast Energy Developments PLC; and
-- 21% interest in Katoro Gold PLC, amongst others.
Kibo's current waste-to-energy and biofuel portfolio comprise a
substantial set of diversified projects that are all in an advanced
stage of development (all at bankable feasibility level), with
significant inherent value. This will provide USE with a robust and
well-developed IPO portfolio that can be advanced to financial
close and, ultimately, into production and revenue generation
within 18 months from IPO. Kibo expects that the utility-scale
projects could reach the same status within 18 to 24 months
thereafter, if the current commercial scale test work demonstrates
positive results. This commercial scale testing follows on from the
completion of positive bench-testing work. Post IPO, USE will also
benefit from the strategic technical support, services and
capabilities that will remain in the Kibo portfolio. Kibo will in
turn unlock significant shareholder value via the IPO and also add
another significant potential revenue stream to its continuously
increasing number of current and future diversified revenue
streams.
Background to Renewable/Clean Energy
The move for renewable/clean energy is spearheaded by the United
Nations' Sustainable Development Goals ('UN SDGs'), specifically
SDG 7, Ensure access to affordable, reliable, sustainable and
modern energy for all.* Fossil fuels, such as coal and gas, have
long been used for energy generation and are the largest
contributor to global climate change, accounting for more than 75%
of global greenhouse gas ('GHG') emissions and nearly 90% of carbon
dioxide emissions.** In their commitments to the UN SDGs,
specifically reversing the impacts of climate change, reducing
emissions by almost half by 2030 and reaching net zero by 2050,
countries across the world, including the UK, are seeking to end
their reliance on fossil fuels and invest in alternative sources of
energy that are sustainable, clean, accessible and affordable. In
South Africa, there is also an increased demand for private
electricity generation where the state utility, Eskom, is unable to
meet this demand.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014.
Notes:
* https://sdgs.un.org/goals/goal7
**
https://www.un.org/en/climatechange/raising-ambition/renewable-energy
**S**
For further information please visit www.kibo.energy or
contact:
Louis Coetzee info@kibo.energy Kibo Energy Chief Executive
PLC Officer
Andreas Lianos +357 99 53 1107 River Group JSE Corporate
and Designated
Adviser
------------------------------ -------------------- ----------------------
Claire Noyce +44 (0) 20 3764 2341 Hybridan LLP Joint Broker
------------------------------ -------------------- ----------------------
Damon Heath +44 207 186 9952 Shard Capital Joint Broker
Partners LLP
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Bhavesh Patel +44 20 3440 6800 RFC Ambrian NOMAD on AIM
/ Stephen Ltd
Allen
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Zainab Slemang Zainab@lifacommunications.com Lifa Communications Investor and Media
van Rijmenant Relations Consultant
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Johannesburg
29 September 2022
Corporate and Designated Adviser
River Group
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