Kibo Energy subsidiary acquires 9MW UK gas power project

Africa-focused energy company Kibo Energy has agreed to acquire a nine-megawatt flexible gas power project in the UK.

Kibo said on Monday that its 100%-owned British subsidiary, Sloane Developments, would pay £1.5m in cash for the asset at completion, with a further £200,000 payment to be satisfied via the issue of new listed ordinary shares in Sloan to the vendor, subject to a successful listing for Sloane on the London Stock Exchange.

The AIM-listed group highlighted that the acquisition was in line with Sloane's proposed admission, which will facilitate the development of a portfolio of flexible UK power plants operating in the rapidly growing reserve power market.

Chief executive Louis Coetzee said: "Together with Sloane's upcoming listing, this acquisition will provide an outstanding platform from which to take full advantage of the opportunity that has been identified in the Reserve Power market, the fastest-growing energy sector in the UK.

"Following the LSE admission, Sloane will be in a position to develop its portfolio at scale and pace, as opposed to on a project-by-project basis and advance significantly towards immanent revenue generation."

As of 0940 BST, Kibo shares were up 10.0% at 0.33p.