REG - Chariot Limited - Acquisition of Renewable Water Production Business

ChariotAnnouncement

30/01/2023 07:00

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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                                  +44 (0)20 7318 0450

 Adonis Pouroulis, CEO

 Julian Maurice-Williams, CFO

 Cenkos Securities Plc (Nomad and Joint Broker)   +44 (0)20 7397 8900

 Derrick Lee, Adam Rae

 Stifel Nicolaus Europe Limited (Joint Broker)    +44 (0) 20 7710 7760

 Callum Stewart, Ashton Clanfield
 Celicourt Communications (Financial PR)          +44 (0)20 8434 2754

 Mark Antelme, Jimmy Lea

 

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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