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Kibo completes acquisition of 60% interest in MED

Africa-focused energy company Kibo Energy has completed the acquisition of a 60% equity interest in Mast Energy Developments (MED), a private UK registered company targeting the development and operation of flexible power plants to service the reserve power generation market.

MED’s business strategy is to acquire and develop a portfolio of small-scale power generation assets.

Various “shovel ready” sites have already been identified in the UK, capable of sustaining gas-fired power generators and ancillary structures from 20 MW upwards.

The sites have full planning permission and permitting in place, long-term lease agreements, grid and gas connection offers and positive feasibility studies, pertaining to technical and commercial viability.

Kibo will settle the transaction purchase through the issue of 5.71-million new ordinary shares at 5.25p to MED.

“This acquisition provides Kibo with the realistic possibility of near-term revenue generating assets and enables us to combine our knowledge of the power generation market both in mature and emerging markets.

“There is a distinct short-term revenue generating potential in the UK, which is positive for Kibo and importantly all early-stage royalties payable to the sellers will be reinvested in Kibo ordinary equity,”  Kibo CEO Louis Coetzee said on Tuesday.