VivoPower considers revised $200 million bid for Tembo stake

LONDON - VivoPower International PLC (NASDAQ:VVPR), whose stock has surged over 412% year-to-date according to InvestingPro data, is currently assessing a revised acquisition proposal from Energi Holdings Limited for a majority stake in its subsidiary, Tembo e-LV B.V. The new offer suggests an enterprise value of $200 million for Tembo, an increase from the previous $180 million valuation, for a 51% stake rather than the prior 80%. This valuation comes as the company’s market capitalization stands at approximately $84 million.

The updated proposition from Energi comes as a strategic move to acquire control over Tembo, a company specializing in electric vehicle solutions. The enterprise valuation reflects the total worth for 100% of Tembo, with the equity purchase price for the 51% stake to be adjusted according to Tembo’s net debt and other customary adjustments at closing.

Energi has also shown support for Tembo’s planned business combination with Cactus Acquisition Corp. 1 Limited (CCTS), indicating a willingness to integrate its stake into the merged entity. VivoPower, which would retain a significant shareholding post-transaction, is committed to optimizing its capital structure and maximizing shareholder value. According to InvestingPro analysis, this focus on debt retirement is crucial, as the company currently carries nearly $29 million in total debt and shows concerning liquidity metrics with a current ratio of 0.3. Proceeds from such strategic transactions are intended to be used for purposes including debt retirement, with the potential for returning surplus funds to shareholders.

The proposal from Energi remains non-binding and is subject to various conditions, including due diligence, the negotiation of definitive legal documentation, and approvals from VivoPower’s board and shareholders. There is no certainty that a definitive agreement will be reached or that the transaction will be completed as proposed or at all. VivoPower has stated it will not provide further updates on the proposal until it deems necessary or obligatory.

This news is based on a press release statement and reflects the ongoing strategic initiatives of VivoPower as it evaluates this significant investment proposition. The company, known for its sustainable energy solutions and recent pivot towards a digital asset treasury strategy focused on XRP, is exploring options to enhance its business model and financial position. InvestingPro data reveals the company’s overall financial health score is currently weak at 1.63, highlighting the importance of this strategic transaction for the company’s future stability. InvestingPro subscribers have access to 15 additional key insights about VivoPower’s financial position and market performance.

In other recent news, VivoPower International PLC announced a successful private capital raise of approximately $121 million, led by Prince Abdulaziz bin Turki Abdulaziz Al Saud. The funds are earmarked for building a digital asset treasury focused on XRP and reducing debt. Additionally, VivoPower’s subsidiary, Tembo e-LV, has secured an order from The Safari Collection for electric vehicle conversion kits, aiming to electrify its fleet for sustainable tourism in Kenya. In a separate development, VivoPower has entered into a $85 million agreement with Saudi Arabia’s Green Watt to supply 1,600 electric utility vehicles over five years. Furthermore, Energi Holdings Limited has revised its takeover proposal to acquire 80% of VivoPower’s unaffiliated free float shares, aligning with VivoPower’s strategic initiatives, including the spin-offs of Tembo and Caret Digital. VivoPower has also clarified the terms of Energi Holdings’ proportional takeover offer, which is contingent on due diligence. These developments highlight VivoPower’s ongoing expansion and strategic focus on sustainable energy and digital assets.

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