TIDMCHAR
RNS Number : 0644X
Chariot Limited
18 December 2023
18 December 2023
Chariot Limited
("Chariot", the "Company" or the "Group")
Increased Holding in Electricity Trading Joint Venture in South
Africa
Unlocks participation in significant renewable projects in large
deregulating energy market
Chariot Limited (AIM: CHAR), the Africa focused transitional
energy group, is pleased to announce that it has increased its
stake in the South African electricity trading company Etana Energy
(Pty) Limited ("Etana") alongside H1 Holdings (Pty) Limited
("H1").
On completion, Chariot will own 49% (previously 25%) and H1 will
own 51% (previously 26%) of Etana. This transaction involves
Chariot and H1 in substance acquiring the 49% of Etana previously
held by the Neura Group, on identical pro rata terms. H1 is a
black-owned and managed company based in South Africa, which has a
proven track record in developing and investing in large renewable
projects.
-- Etana holds one of the few electricity trading licences
granted by the National Energy Regulator of South Africa, enabling
it to buy and sell electricity through the national transmission
grid.
-- South Africa has the largest electricity market on the
continent, but it suffers regular power outages due to insufficient
supply. To combat this energy crisis, rapid market deregulation is
currently taking place, facilitating the build of renewable energy
projects.
-- Etana's business plan is to deliver unique renewable energy
mix solutions at competitive prices to help address these
significant power requirements across South Africa, with the
trading licence opening up access to high-volume electricity
consumers, including municipal, industrial and retail
customers.
-- Electricity trading will bring an additional revenue stream
into Chariot and further enable Chariot's participation in large
renewable projects in Southern Africa.
Benoit Garrivier, CEO of Chariot Transitional Power commented ,
"We are very pleased to be increasing our exposure to the South
African energy market by acquiring this additional stake in Etana.
We will not only get an increased split of future revenues, but the
electricity trading business unlocks significant renewable
generation capacity which we are looking to develop in South
Africa. We are tapping into the future growth of an essential
market, one that is rapidly transforming and expanding, and we look
forward to playing a material role within this together with H1 and
other major commercial partners."
Reyburn Hendricks, CEO of H1 Holdings commented, "As a long time
independent power producer in the South Africa electricity market,
we are convinced that the way to unlock project finance based power
generation projects is through the utilization of privately
licensed trading companies. As one of the first movers in this
space, we believe that Etana is well positioned to capitalize on
this exciting opportunity."
Key deal terms:
-- Chariot is acquiring 49% of Etana from the Neura Group, with
H1 acquiring 25% of Etana from Chariot, contemporaneously. This
transaction results in a simplified ownership structure and
commercial terms are identical for Chariot and H1 on a pro rata
basis.
-- Upfront cash consideration is net c.US$0.3m on completion
with a further c.US$0.7m payable by 31 March 2024.
-- Success based contingent payments of net c.US$1.6m on
financial close of a 250MW generation project and a further
consideration of net c.US$2.6m payable in 2028, subject to further
significant generation projects reaching financial close.
-- The upfront consideration will be paid from current cash
balances with success fees payable from future subsidiary level
project finance.
Disclosure relating to Chariot
Adonis Pouroulis, CEO and director, of Chariot, beneficially
controls 28.21% per cent. of the total voting rights in the Neura
Group. The Neura Group is not considered to be a related party for
the purposes of the AIM Rules for Companies and the Company
confirms that the transaction was negotiated on an arms-length
basis between Chariot, H1 and the Neura Group sellers.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014, as retained in the UK
pursuant to S3 of the European Union (Withdrawal) Act 2018.
Enquiries
Chariot Limited
Adonis Pouroulis, CEO
Julian Maurice-Williams, CFO +44 (0)20 7318 0450
Cavendish Capital Markets Plc (Nomad and Joint
Broker)
Derrick Lee, Adam Rae + 44 (0)131 220 9778
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart, Ashton Clanfield +44 (0) 20 7710 7760
Celicourt Communications (Financial PR)
Mark Antelme, Jimmy Lea +44 (0) 20 7770 6424
NOTES FOR EDITORS:
About Chariot
Chariot is an Africa focused transitional energy group with
three business streams, Transitional Gas, Transitional Power and
Green Hydrogen.
Chariot Transitional Gas is focused on high value, low risk gas
development projects in Morocco, a fast-growing emerging economy,
with a clear route to early monetisation, delivery of free cashflow
and material exploration upside.
Chariot Transitional Power is focused on providing competitive,
sustainable and reliable energy and water solutions across the
continent through building, generating and trading renewable
power.
Chariot Green Hydrogen is partnering with TEH2 (80% owned by
TotalEnergies, 20% by the EREN Group) and the Government of
Mauritania on the potential development of a 10GW green hydrogen
project, Project Nour in Mauritania, and are progressing pilot
projects in Morocco.
The ordinary shares of Chariot Limited are admitted to trading
on the AIM under the symbol 'CHAR'.
https://chariotenergygroup.com
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END
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