Power infrastructure developer VivoPower International said on Tuesday it has signed a non-binding agreement to merge with Canada’s Future Automotive Solutions and Technologies (FAST), which would create a $1.13 billion combined company.
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 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-battery and off-road vehicles for sectors including mining, utilities, infrastructure, government services and humanitarian aid.
(Reporting by Sourasis Bose in Bengaluru; Editing by Shinjini Ganguli)
Image (Credit: Reuters)
