VivoPower's Tembo E-LV to go public via $904 mln SPAC deal

Ark Solutions

29/08/2024 15:18

Aug 29 (Reuters) - Tembo E-LV, a unit of power
infrastructure developer VivoPower International  VVPR.O , said
on Thursday it has agreed to go public through a merger with
blank check firm Cactus Acquisition  CCTS.O  in a deal that
would value the new entity at $904 million.
    Tembo specializes in battery-electric and off-road vehicles
for sectors including mining, utilities, infrastructure,
government services and humanitarian aid.
    In 2020, VivoPower acquired a 51% stake in Tembo to expand
its market for electric light vehicles and sustainable energy
solutions. 
    The deal is expected to close by the end of the year and the
newly formed company, Tembo Group, will seek a listing on the
Nasdaq exchange. 
    SPAC deals have reduced significantly since a boom in 2021
due to increased regulatory scrutiny.
    A special purpose acquisition company, or SPAC, is created
to raise capital through an IPO with the intention of merging
with a private company and taking it public. 

 (Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Alan Barona)
 ((HarshitaMary.Varghese@thomsonreuters.com))