Active Energy Group (LSE:AEG), the renewable energy and digital infrastructure platform, has signed non-binding heads of terms to acquire a 2.5 MVA grid connection at Taweela in the UAE for a total consideration of £1.25 million.
The consideration is split 50:50 between equity of £625,000, to be satisfied by new shares issued at a premium to the most recent closing price and subject to shareholder authorities and a 12-month lock-in, and cash of £625,000 which will be deferred in two equal instalments over 12 months.
"This transaction is another clear demonstration of our ability to execute at pace and secure high-quality energy infrastructure on highly attractive terms," Paul Elliott, Chief Executive Officer.
Completion is conditional on satisfactory confirmatory due diligence and the execution of legally binding documentation, and the company expects to complete within approximately four weeks and to target energisation and revenue generation within 12-15 weeks of completion.
Including previously announced arrangements, AEG's secured and proposed UAE capacity now comprises Ghummud 3.5 MVA, Kazna 1.5 MVA, Taweela 2.5 MVA and a core development site of 8.0 MVA, a portfolio the company says could generate c.$0.45 million revenue per MVA or circa $7 million annualised at steady state.
