VivoPower International Plc (VVPR:NASDAQ) today announced that it has "signed a definitive agreement to acquire a 51% shareholding in Tembo e-LV B.V. (Tembo)."
The company noted that Tembo is a specialist battery-electric and off-road vehicle company that is headquartered in the Netherlands. Tembo maintains global sales and distribution channels across four continents including Europe, Africa, Australia and North America. Tembo's services and products cater to a wide range of industries including infrastructure, mining, utilities and government services. The company also provides customized light electric vehicles for rugged applications such as game safaris and humanitarian aid.
The firm advised that the total agreed upon purchase price for 51% of Tembo is US$4.7 million. The company added that it will also have the option to acquire the remaining 49% of Tembo in the future, but the exact terms and pricing for that option were not provided in the report. VivoPower noted that the transaction remains subject to ordinary closing conditions, which include capital structuring and funding mix requirements.
The report indicated that Tembo generated revenues (unaudited) of US$2.3 million in FY/19. VivoPower commented that the potential market for commercial fleet electric vehicles in the areas Tembo operates could be at least US$36 billion and that these estimates do not even include the U.S., Asia or South America where Tembo does not presently operate.
VivoPower International's Executive Chairman and CEO Kevin Chin remarked, "We look forward to working even more closely with the Tembo team in scaling up its capacity to deliver customized and/or ruggedized commercial fleet electrification solutions. Furthermore, this acquisition will enable VivoPower to accelerate the roll out of our sustainable energy solutions offering, with an initial focus on the mining, infrastructure and utilities sectors globally."
The report stated that together VivoPower and Tembo currently have more than 700 customers and that a large number of them are involved in the infrastructure mining and utilities sectors.
Tembo's CEO and Founder Frank Daams added, "VivoPower's investment will allow Tembo to build additional capacity to meet pent up demand from our customers and improve efficiencies of scale. Given that the Tembo and VivoPower teams have already started working together on customer-initiated requests for proposals, we believe that this will translate into a growing order book."
VivoPower is based in London and describes itself as "an international battery technology, electric vehicle, solar and critical power services company whose core purpose is to deliver sustainable energy solutions to its customers." In addition to the U.K., the company has operations in Australia, Canada and the U.S.
VivoPower International started off the day with a market capitalization of around $136.8 million with approximately 13.56 million shares outstanding. VVPR shares opened 57% higher today at $15.84 (+$10.09, +56.99%) over yesterday's $10.09 closing price and reached a new 52-week high price this morning of $24.33. The stock has traded today between $14.10 and $24.33 per share and is currently trading at $17.00 (+$6.91, +68.48%).[NLINSERT]
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