Energi Holdings to Acquire a 51% Stake in VivoPower's Subsidiary Tembo e-LV

VivoPower International (NASDAQ:VVPR) is one of the best performing solar stocks to buy now. On August 18, VivoPower International announced an agreement with Energi Holdings Limited, whereby Energi will acquire a 51% shareholding in VivoPower’s subsidiary, Tembo e-LV B.V. The strategic investment is based on a total enterprise valuation for 100% of Tembo of $200 million.

The deal allows for the resumption of Tembo’s planned business combination with the special purpose acquisition company/SPAC, Cactus Acquisition Corp 1 Limited/CCTSF, which values Tembo at an equity valuation of $838 million. The investment by Energi Holdings is a private investment in public equity/PIPE transaction. The final equity purchase price for the 51% stake will be calculated from the $200 million enterprise valuation, after adjustments for Tembo’s net debt and other customary closing conditions.

VivoPower will continue to hold a significant share in Tembo after the SPAC merger is completed. The immediate next step for the transaction is the filing of a registration statement on Form F-4 with the US Securities and Exchange Commission/SEC. In anticipation of Tembo becoming a publicly listed company, VivoPower has already started recruiting a dedicated board of directors for the subsidiary.

VivoPower International (NASDAQ:VVPR) provides energy solutions for customized and ruggedized fleet applications, battery & microgrids, and solar & critical power technology & services. It operates through Electric Vehicles, Sustainable Energy Solutions, and Solar Development segments.

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Disclosure: None. This article is originally published at Insider Monkey.