Chariot Limited Acquisition of Renewable Water Production Business (1739O)
30 January 2023 - 6:00PM
UK Regulatory
TIDMCHAR
RNS Number : 1739O
Chariot Limited
30 January 2023
30 January 2023
Chariot Limited
("Chariot", the "Company")
Acquisition of Renewable Water Production Business
Complementary strategic addition to Chariot's portfolio
Chariot Limited (AIM: CHAR), the Africa focused transitional
energy company, is pleased to announce it has entered into a sales
agreement for the acquisition of the business and assets of an
independent water producer, ENEO Water PTE Limited ("ENEO"), an
African company focused on delivering clean water solutions using
renewable energy. This acquisition complements Chariot's
Transitional Power and Green Hydrogen businesses within the context
of increasing water scarcity across Africa .
-- Desalinated water is an essential component of green hydrogen
production, so the capacity to implement desalination solutions
powered by renewable energy will be critical for the feasibility of
Project Nour in Mauritania and other green hydrogen projects ;
-- Chariot's intention is to provide affordable access to water
for private offtakers and municipalities in Africa, as part of its
commitment to socially responsible development. Chariot intends to
originate, invest in and own decentralised water supply projects,
where the water is produced through renewable energy and can be
sold to offtakers under long- term agreements;
-- ENEO utilises an efficient, modular and scalable reverse
osmosis technology that can be 100% powered by solar energy to
produce desalinated water ;
-- A proof - of - concept project at the largest windfarm in the
Republic of Djibouti is under construction which will give local
communities access to potable water for the next 20 years; and
-- Consideration for the acquisition shall be payable in Chariot
Ordinary Shares with an initial US$0.5 million payable on
completion of the sales agreement and a further deferred
consideration of up to US$0.5 million payable on the achievement of
financial close on further projects.
Benoit Garrivier, Head of Chariot Transitional Power,
commented:
"Water is a precious commodity with cleanliness, scarcity and
sustainability of supply becoming growing themes throughout Africa.
This acquisition of ENEO is a strong strategic fit for Chariot with
the renewable power and water sectors sharing similar geographic
and offtake markets. The treatment of brackish and contaminated
water is an important consideration for commercial and industrial
companies and desalinated water is also an important component of
green hydrogen production, so we also have a natural overlap within
our current portfolio and network.
The project in Djibouti provides important proof of concept and
we are very pleased to be part of this operation, helping to
provide water produced through renewable sources to the local
communities. As the technology we use is both modular and scalable
we look forward to expanding this offering, in line with our
mission of creating value whilst delivering a range of positive
impacts."
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.
Information on the Acquisition
Initial consideration payable on completion of the sales
agreement is US$0.5 million in Chariot Ordinary Shares based on the
30-day VWAP prior to financial closing of the Djibouti project
(representing 2,267,694 shares). Deferred consideration also
payable in Chariot Ordinary Shares up to US$0.5 million
(representing a maximum of 2,267,694 shares), is payable within a
24-month period dependent on achieving financial close on further
projects. It is intended that the Ordinary Shares issued under the
initial and deferred consideration will be subject to a lock-in
period of 12 months.
Enquiries
Chariot Limited
Adonis Pouroulis, CEO
Julian Maurice-Williams, CFO +44 (0)20 7318 0450
Cenkos Securities Plc (Nomad and Joint Broker)
Derrick Lee, Adam Rae + 44 (0)20 7397 8900
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 8434 2754
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 a high value, low risk
gas development project offshore Morocco in 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 Total Eren and the
Government of Mauritania on the potential development of a 10GW
green hydrogen project, named Project Nour.
The ordinary shares of Chariot Limited are admitted to trading
on the AIM under the symbol 'CHAR'.
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