Kibo Energy PLC’s (LON:KIBO) 60%-owned subsidiary, MAST Energy Developments Limited, has completed its acquisition of special purpose vehicle (SPV) Bordersley Power Limited.
The energy firm said under the deal, which was originally announced in May, MAST had acquired a 5 megawatt gas-fuelled power generation plant, which was targeting commercial commissioning at the end of the first quarter of 2020, as well as an option to lease the land for a project site and offers to connect to the electrical and gas grids.
READ: Kibo Energy surges as UK subsidiary agrees to acquire 5MW gas-fuelled power plant
MAST has paid £175,000 in cash for Bordersley in addition to £2,000 in reimbursement costs to the SPV vendor related to the gas grid connection offer.
The company added that negotiations were now underway with German energy trader Statkraft Markets for a power purchase agreement.
Louis Coetzee, Kibo’s chief executive, said the acquisition was “a key milestone” in MAST’s efforts to become a key player in the UK’s flexible power market.
In late-afternoon trading on Friday, Kibo’s shares were up 5.1% at 1p.