KIBO Energy, the Johannesburg-listed coal to power firm, said it had extended by mutual agreement with its engineering, procurement and construction partner, SEPCO III, to extend to November 30 the timeline allowing for the firm to make an equity investment in Kibo as per a previous agreement.
“SEPCO III’s internal investment approval process is ongoing and could not be completed before the 30 September 2018 due date by which all conditions, including required approvals, had to be obtained,” said Kibo in a statement, adding that further updates would be provided in due course.
On July 3, Kibo announced a transaction in which it could potentially sell up to 25% of the business in return for cash to SEPCO III. In return for shares in the company, SEPCO III will also have the right to bid on all of Kibo Mining’s current and future coal-to-power projects in sub-Saharan Africa on the proviso the bids are market competitive.
The terms of the agreement is that SEPCO III has committed to an initial direct equity investment of between 10% and 15% of Kibo’s issued share capital. The price at which the shares are issued is yet to be decided between the parties. The two companies are currently partners in the Mbeya Coal to Power Project situated in Tanzania.
