By Joe Hoppe
Shares in Kibo Energy rose Thursday after the company said its subsidiary has agreed a new joint venture with an institutional investor-led consortium, along with a reprofiling of the outstanding balances on its line-of-credit facilities.
Shares at 0735 GMT were flat on 0.07 pence, having risen 14% earlier in the session.
The energy company said its subsidiary Mast Energy Developments has concluded heads of terms to form the new venture with the undisclosed investors. The terms are subject to typical due diligence, it said.
Mast said the investor will inject all required investment capital into the joint venture, with a total investment value of 33.6 million pounds ($42.0 million). Mast will provide the required projects to the venture, for a total portfolio of gas peaker plants with a combined generation output of around 50 megawatts developed, acquired or constructed and income generating within the next year.
The investor will hold 74.9% of the venture with Mast, which will have joint-control of the board and full operational control, holding the remaining stake.
Kibo separately said that it has renewed a memorandum of understanding with the Tanzania Electric Supply Company, which sets out guidelines and timelines to conclude a power purchase agreement for the Mbeya power project. The parties have agreed to establish a joint-technical committee.
Write to Joe Hoppe at joseph.hoppe@wsj.com
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