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LONDON - VivoPower International PLC (NASDAQ:VVPR), a sustainable energy solutions company with a current market capitalization of $13.23 million, has provided clarification on the proportional takeover offer from Energi Holdings Limited to its shareholders. According to InvestingPro data, the company’s stock has surged over 225% in the past six months, despite showing weak financial health metrics. The offer involves the acquisition of 8 out of every 10 shares held by each shareholder at a record date yet to be determined, with the purchase price calculated as US$180 million minus net debt, divided by the number of eligible ordinary shares at the time.
The company announced that this partial buyout is contingent upon the successful completion of due diligence, which is currently underway. VivoPower, a B Corporation recognized for its focus on electric solutions and decarbonization, operates in multiple regions including Australia, Canada, the Netherlands, the UK, the US, the Philippines, and the UAE. While maintaining impressive gross profit margins of nearly 75%, InvestingPro analysis reveals significant challenges with debt management and cash flow sustainability. Get access to 14 additional exclusive ProTips and comprehensive financial metrics with InvestingPro.
The offer by Energi Holdings is a strategic move within the energy sector, as VivoPower continues to expand its services in customized electric fleet applications, charging infrastructure, battery technology, and microgrids. With current revenue of just $0.08 million in the last twelve months and a debt-to-capital ratio of 69%, this strategic development comes at a crucial time for the company’s future. The company’s commitment to enabling customers to achieve net-zero carbon status has been central to its operations since its establishment in 2014 and Nasdaq listing in 2016.
This news comes with the usual caveats of forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. VivoPower’s management has expressed that the offer’s terms are based on current expectations and may change due to various economic, business, and regulatory factors.
Investors and shareholders are advised that the information provided is based on a press release statement from VivoPower International PLC and should be considered in the context of the company’s filings with the U.S. Securities and Exchange Commission. The details of the offer, including the record date and final terms, will be determined and shared with shareholders in due course.
In other recent news, VivoPower International PLC has secured an $85 million deal to supply 1,600 electric utility vehicles in Saudi Arabia through a partnership with Green Watt. This agreement aligns with both companies’ goals to promote sustainable energy solutions in the region. Additionally, VivoPower has received a revised takeover bid from Energi Holdings Limited, raising the enterprise value from $120 million to $180 million. Energi aims to acquire 80% of VivoPower’s unaffiliated free float shares, potentially making it the majority shareholder.
VivoPower is also advancing its business combination with Tembo through a SPAC merger with Cactus Acquisition Corp. 1 Limited, valued at $904 million. The company is preparing to file an F-4 registration statement with the SEC concerning this agreement. Furthermore, VivoPower plans to spin off Caret Digital via a direct listing IPO, with an implied market cap of $250 million. Energi Holdings has expressed support for VivoPower’s strategic initiatives, including these spin-offs. These developments reflect VivoPower’s ongoing efforts to expand its global footprint and the increasing demand for electric vehicles.
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