Shares in Mast Energy Developments and its parent company Kibo Energy saw a surge on Wednesday after Mast announced the completion of a first and binding joint-venture agreement with an institutional investor-led consortium.
At 1248 GMT, shares in Mast had risen by 45% to 2.42 pence, while Kibo Energy’s shares were up by 14% to 0.06 pence.
According to Mast, the institutional investors, led by Seira Capital, will provide all the necessary capital for the joint venture, which will consist of a portfolio of gas peaker plants. The initial expected total investment value is 5.9 million pounds ($7.6 million), with no additional funding required from Mast.
Furthermore, both parties have committed to finalizing terms for a second joint venture, which would increase the total investment value to approximately GBP 31 million.
Mast’s Chief Executive, Pieter Krugel, expressed his excitement about the agreement, stating, “In addition to Mast’s existing portfolio of assets, which we will continue to expand, the joint venture offers the company a substantial cash injection, as well as a stake in a portfolio of assets totaling an estimated 33 megawatts. These assets are expected to be fully funded, constructed, and generating income within the next 12 months.”
