Kibo Energy PLC (“Kibo” or the “Company”), the multi-asset, Africa focused, energy company, is pleased to announce that it has signed a Memorandum of Understanding (“MOU”) for the acquisition (“the Acquisition”) of a 60% equity interest in Mast Energy Developments (“MED”), a private UK registered company targeting the development and operation of flexible power plants to service the Reserve Power generation market. Under the terms of the MOU, the Company can acquire a 60% shareholding in MED for a consideration of £300,000 payable to existing MED shareholders (“the Sellers”) in new Kibo shares and a share of future project revenue royalties, which will be reinvested in the Company in the short term to an amount of GBP 2.2 million. The full summary terms of the MOU are described further under the Key Terms section below.

MED’s business strategy is to acquire and develop a portfolio of small scale power generation assets. Various “shovel ready” sites have already been identified in the UK, capable of sustaining gas fired power generators and ancillary structures from 20MW upwards. They have full planning permission and permitting in place, long term lease agreements, grid & gas connection offers and positive feasibility studies, pertaining to technical and commercial viability.

Kibo’s initial review of MED’s business plan indicates that its first asset under acquisition in the UK described above can be up and running within 12 months, thus potentially providing revenue streams to Kibo in the short term. Similar lead time periods from site acquisition to generator installation and power generation are indicated for other projects of similar size in the UK. Financial modelling indicates projected IRRs of 13-16% and NPVs of GBP 16 -19 million for the initial assets described above. MED is exploiting a growth niche market in the UK for small scale Reserve Power generation to balance out the national grid at critical times.

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