Chariot Ltd (AIM:CHAR, OTC:OIGLF) has announced a strategic review of its Transitional Power division dedicated to sustainable power and water solutions across Africa.
Since its inception in 2020, the company has built its presence in three sectors: Natural gas, renewables, and green hydrogen sectors.
Investors were told the Transitional Power segment is seeking near- to medium-term funding to realise its full potential. The company is exploring debt and equity financing options at the subsidiary level, with potential investment interest from South Africa-focused investors.
While Chariot's Green Hydrogen division will continue as a core part of the group, the strategic review could lead to various outcomes for the Transitional Power business, including a full or partial sale, a demerger, or its retention.
The primary aim is to maximise shareholder value, the company said.
"I am very proud of our work across our Transitional Power division and wider business over the past three years," said Chariot CEO Adonis Pouroulis.
"In light of the impending funding requirements needed to deliver projects from the portfolio, we believe that launching this strategic review is in the best interests of all stakeholders as we look to realise value from this division whilst enabling it to continue its ongoing growth and development.
"This review comes at a time of renewed focus on our near-term natural gas development assets in Morocco with the medium-term ambition of returning capital to shareholders from gas revenues."