Kibo Energy seeks to buy 20-GW renewables pipeline in Europe, Africa

Kibo Energy PLC has signed a binding term sheet to acquire from Swiss company ESGTI AG a diverse portfolio of wind, solar and agri-photovoltaic projects across Europe and Africa that is targeted to reach 20 GW of generation capacity within six years.

In line with the acquisition, Kibo has decided to shed its loss-making legacy coal assets and the company's waste-to-energy and biofuel projects in sub-Saharan Africa carried by its wholly-owned subsidiary Kibo Mining (Cyprus) Limited (KMCL), the Ireland-based company said in a statement published today.

The deal with ESGTI, valued at EUR 400 million (USD 443.2m), encompasses 36 development projects spanning 15 countries from the early stages to the under-construction status.

The proposed acquisition is being arranged by asset manager Aria Capital Management Ltd. The term sheet is subject to various standard closing conditions, including completion of mutual due diligence by all parties, board and shareholder approvals and regulatory clearances.

The acquisition is structured as a reverse takeover (RTO) as its value is much larger than the company’s market capitalisation. The RTO will be accompanied by a consolidation of the share capital and a EUR-30-million share placing which will be arranged by the vendor.

As for the asset disposal, a term sheet has been signed to sell KMCL to Aria, with a conditional sale and purchase agreement expected to be signed within five business days. As transaction consideration, Aria will assume the historic payroll liabilities associated with the assets.

Kibo's 19.52% shareholding in Mast Energy Developments PLC (MED) -- a UK-based multi-asset owner, developer and operator in the flexible power market currently held through KMCL, will not be included in the KMCL sale.

Focused on Sub-Saharan Africa and the UK, Kibo describes itself as a multi-asset sustainable energy development company engaged in three areas -- sustainable energy, reserve power and long-duration energy storage. It is currently developing reserve power and waste-to-energy projects, while identifying other project pipelines in sustainable and long-duration energy storage.