Active Energy Group PLC (AIM:AEG, OTCID:AEUSF) shares shot up around 17%, changing hands at 0.16p, after announcng the signing of heads of terms to acquire a 2.5 MVA grid connection in Taweela, UAE, extending its push to assemble energisation-ready power capacity for digital infrastructure projects in the Middle East.
The proposed acquisition values the grid connection at £1.25 million, or £500,000 per MVA. Half of that would be paid in new ordinary shares issued at a premium to the latest closing price at completion, subject to shareholder approval, while the remaining £625,000 would be paid in cash in two deferred instalments over the following 12 months.
"This transaction is another clear demonstration of our ability to execute at pace and secure high-quality energy infrastructure on highly attractive terms," said Actve Energy chief executive Paul Elliott.
The deal is not yet binding and remains subject to confirmatory due diligence covering grid capacity, connection rights, load availability and any upgrade requirements, alongside final legal documentation. Active Energy said it expects to complete the transaction in around four weeks and, after that, aims to deploy its modular digital infrastructure solution with energisation and revenue generation targeted within 12 to 15 weeks.
Including previously announced arrangements, the company said its secured and proposed UAE capacity now stands at 15.5 MVA across Ghummud, Kazna, Taweela and a core development site. Based on current assumptions and third-party offtake agreements, that portfolio is expected to generate about US$0.45 million per MVA, equating to roughly US$7 million in annualised revenue at steady state, subject to utilisation and market conditions.
Elliott added: "Taweela not only enhances our growing UAE footprint but continues the trend of acquiring capacity at a meaningful discount to both replacement cost and international benchmarks.
"What is particularly compelling is the speed at which we are scaling. In under 12 months, we have assembled 15.5 MVA of capacity, creating a strong foundation for near-term revenue generation and future expansion. With a clear pipeline and a repeatable acquisition model, we believe we are well positioned to accelerate towards our 100 MVA target while maintaining strict capital discipline."