On Tuesday, VivoPower International (NASDAQ: VVPR), the power infrastructure developer, announced that it signed a non-binding agreement to merge with Canada’s Future Automotive Solutions and Technologies (FAST). The merger would create a combined company valued at $1.13 billion.
The agreement values VivoPower’s equity at $556 million and FAST at $578 million, and allows the companies an exclusive period of 90 days to reach a definitive agreement, U.K.-based VivoPower said.
Shares of VivoPower (NASDAQ: VVPR) were down 2.3% in early trading after the deal with FAST, which converts traditional internal combustion engine vehicles to run on hydrogen.
A key condition for the deal is the completion of a $904 million merger between VivoPower’s unit, Tembo E-LV, and blank check firm Cactus Acquisition, VivoPower said.
Tembo specializes in electric batteries and off-road vehicles for sectors, including mining, utilities, infrastructure, government services, and humanitarian aid.
(Source: Reuters)
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
