Renewable energy-focused development company Kibo Energy said on Friday that its UK-based multi-asset operator subsidiary Mast Energy Developments (MED) had extended the completion long-stop date for its first definitive and binding joint venture agreement (JVA) to mid-October.
This would allow for the JV investor consortium to complete the compulsory statutory process for the international transfer of funds associated with any investment that qualifies as an outward direct investment.
It was also noted that funds would be promptly transferred into the UK to complete the JVA upon completion of the statutory process. The latter funds transfer was not previously a requirement, but followed owing to Seira Capital being unable to complete the JVA, announced in August, which necessitated a rearrangement of the investor consortium participation.
MED said it remained confident that the transaction will be completed and continues to work towards this with the investor consortium.
“Whilst the company is clearly disappointed at these ongoing delays in finalising completion of the investment into MED, we remain in continuous dialogue with the investor consortium and continue to be assured by them of their commitment to make this investment and to complete the transaction as soon as possible,” says Kibo Energy CEO Louis Coetzee.
MED said in separate statement that this process and timelines associated therewith remained beyond the control of the company and the JV investor, which remained “fully committed to see this completed at the earliest possible date”.
MED said that until the first definitive and binding JVA had been completed, Seira Capital remained contractually bound under the JVA, and remained in breach of its obligations thereto. Should the investor consortium fail to complete the transaction around the latest completion extension date, MED would consider all its options, including but not limited to starting legal proceedings against Seira and affected parties, as well as alternative investment opportunities.
“We remain confident that the investor consortium will be able to complete the transaction and the board have also received written reassurance from the investor consortium in this regard,” MED CEO Pieter Krügel said.