VivoPower’s Revised Takeover Proposal: Spin-off of Tembo and Caret Digital
VivoPower International PLC, a leading global provider of clean energy solutions, announced on Thursday its intention to remain listed on the Nasdaq Stock Market and to spin off its Tembo Power and Caret Digital subsidiaries as part of a revised US$180 million takeover proposal from private equity firm, Tacitus Capital.
The Proposed Deal
Under the new terms, VivoPower’s shareholders will receive US$1.30 in cash for each share they hold, representing a premium of approximately 39% to the closing price of VivoPower’s ADSs on the Nasdaq Stock Market on March 10, 2023. Additionally, VivoPower’s shareholders will receive one share in Tembo Power for every 12 shares they hold in VivoPower, and one share in Caret Digital for every 25 shares they hold.
Impact on VivoPower
The proposed deal is a significant step forward for VivoPower, providing a cash injection that will strengthen its balance sheet and enable the company to focus on its core business of delivering clean energy solutions. The spin-off of Tembo Power and Caret Digital will create two separate publicly-traded companies, allowing each to focus on its specific growth opportunities and strategic initiatives.
Impact on Tembo Power and Caret Digital
Tembo Power, a leading provider of distributed renewable energy solutions in Africa, will benefit from the spin-off by gaining a stronger focus on its growth opportunities in the rapidly expanding African energy market. Caret Digital, a provider of digital solutions for the energy and utilities sector, will also benefit from increased attention and resources to drive growth in its market.
The Market Reaction
The news was well-received by the market, with VivoPower’s ADSs closing up 39% on the Nasdaq Stock Market on the day of the announcement. Tembo Power and Caret Digital are expected to list on the Nasdaq Stock Market and the London Stock Exchange, respectively, in the coming months.
The Broader Implications
The VivoPower deal is a further indication of the growing trend towards the separation of businesses to create focused, publicly-traded entities. This trend is expected to continue, particularly in sectors where there are significant growth opportunities and where businesses can benefit from increased focus and resources.
Conclusion
The revised takeover proposal from Tacitus Capital represents a significant step forward for VivoPower, providing a cash injection to strengthen its balance sheet and enabling the company to focus on its core business. The spin-off of Tembo Power and Caret Digital will create two separate publicly-traded companies, each with a clear focus on its growth opportunities and strategic initiatives. The market reaction to the news was positive, with VivoPower’s ADSs closing up significantly on the day of the announcement. The broader implications of the deal are likely to be felt in other sectors, where businesses are looking to create focused entities to capitalize on growth opportunities.
- VivoPower to remain listed on Nasdaq
- Tembo Power and Caret Digital to be spun off
- US$180 million takeover proposal from Tacitus Capital
- Shareholders to receive cash and shares in Tembo Power and Caret Digital
- Positive market reaction
- Trend towards creation of focused publicly-traded entities
