VivoPower And Future Automotive Solutions To Merge In $1.13 Bln Deal

(RTTNews) - VivoPower International plc (VVPR) announced Tuesday a strategic heads of agreement to merge with Canadian hydrogen technology company Future Automotive Solutions and Technologies, Inc. or FAST, that reflects an equity valuation of $556 million for VivoPower and $578 million for FAST.

The heads of agreement is exclusive for 90 days, but non-binding until such time definitive transaction documents are executed.

A target completion date of December 31, 2024 has been agreed and is conditional upon, among other things, the consummation of the previously announced business combination transaction between Tembo and Cactus Acquisition Corp. Ltd., the satisfactory completion of a third-party fairness opinion, minimum net cash at closing of $20 million as well as the fulfilment of customary regulatory and merger transaction requirements.

The proposed merger will involve the issuance of 5.72 million restricted new shares in VivoPower to FAST shareholders as consideration. VivoPower shareholders are expected to own 49% of the pro forma combined group upon closing of the proposed merger.

The implied value of VivoPower's current outstanding shares at the $538 million merger equity value is approximately $101 per share.