US bank Stifel has provided its insight on Chariot Ltd (AIM:CHAR, OTC:OIGLF)'s Transitional Power business, which, it reckons, is worth more than the entire company as it trades at its current share price of 7.46p a share.
Stifel thinks the operation, which has four projects generating 515MW of electricity, is worth $132 million, or 10p a share.
The bank reckons the current roster of assets is worth $32 million (based on a discounted cash flow calculation) and pipeline $100 million.
Chariot also has gas and green hydrogen operations, which the US investment bank values at 29p a share.
Earlier, 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.