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(UPDATED) VIVOPOWER AND FUTURE AUTOMOTIVE SOLUTIONS TECHNOLOGIES (FAST) PROFORMA $1.13BN MERGED ENTITY TO BE UK HEADQUARTERED TO QUALIFY FOR $21BN GOVERNMENT CLEAN ENERGY INVESTMENT PROGRAMS
VVPRVivoPower(VVPR) GlobeNewswire News Room·2024-09-26 12:50

Core Insights - The UK government has introduced significant incentives for the clean energy sector, particularly focusing on green hydrogen, with a total budget of US21billionallocatedtotheGreatBritishEnergyunitandtheNationalWealthFund[3][4].−VivoPowerhasenteredintoastrategicagreementtomergewithFutureAutomotiveSolutionsandTechnologies(FAST),aCanadianhydrogentechnologycompany,withthemergerexpectedtoenhanceVivoPower′spositioninthehydrogenmarket[1][6].−ThecombinedentitywillremainheadquarteredintheUKtoqualifyforgovernmentincentivesandsupporttheUK′sgoalofachievingnetzerocarbonemissionsby2030[3][4].InvestmentandMarketContext−InvestmentintheUKcleanenergytransitionsectorsurgedby8421 billion allocated to the Great British Energy unit and the National Wealth Fund [3][4]. - VivoPower has entered into a strategic agreement to merge with Future Automotive Solutions and Technologies (FAST), a Canadian hydrogen technology company, with the merger expected to enhance VivoPower's position in the hydrogen market [1][6]. - The combined entity will remain headquartered in the UK to qualify for government incentives and support the UK's goal of achieving net zero carbon emissions by 2030 [3][4]. Investment and Market Context - Investment in the UK clean energy transition sector surged by 84% year-on-year in 2023, positioning the UK as the fourth-largest market globally for clean energy investments [4]. - The UK government has reaffirmed its commitment to decarbonizing electricity generation and has reinstated a ban on the sale of diesel and petrol vehicles by 2030, which is expected to drive further investment in green technologies [3]. Merger Structure and Valuation - The proposed merger structure indicates that VivoPower will acquire FAST, resulting in a combined entity valued at approximately US1.13 billion, with VivoPower shareholders holding 49% and FAST shareholders holding 51% [5][6]. - VivoPower will issue restricted shares as consideration for the merger, and insiders will commit to a lock-up of their shares in the merged entity [7]. Company Profiles - VivoPower, established in 2014 and listed on Nasdaq since 2016, focuses on sustainable energy solutions, including electric solutions for various applications and aims to provide turnkey decarbonization solutions [8]. - FAST specializes in hydrogen technology, developing vehicles powered by hydrogen and conversion platforms for existing gasoline and diesel vehicles [9].