Africa-focused company Kibo Energy has agreed to buy a 60% stake in a UK power plant developer.
It signed a Memorandum of Understanding for the interest in Mast Energy Developments – which has a portfolio of flexible, small power generation assets – for £300,000 and a share of future project revenue royalties to be reinvested in the company totalling £2.2 million.
Kibo expects its first asset under acquisition in the UK to be operational within 12 months.
CEO Louis Coetzee said: “There is a distinct short-term revenue generating potential in the UK, which is positive for Kibo and importantly all early stage royalties payable to the sellers will be reinvested in Kibo.
“This prospect of receipt of gradually increasing revenue streams in the short term as Mast Energy builds generating capacity and the reinvestment of royalties in the early stages of production will greatly assist the company’s working capital requirements as it develops its rapidly expanding larger scale energy asset portfolio in Africa.”
The deal is subject to regulatory approvals.