Oracle Power PLC (AIM:ORCP), the international natural resources project developer, is pleased to announce that it has entered in to a joint venture agreement with the Private Office of His Highness Shaikh Ahmed Dalmook Al Maktoum (represented through Kaheel Energy FZE, a wholly owned free zone company incorporated under the laws of Dubai, UAE (“Kaheel Energy”)), with the objective of advancing the Company’s green hydrogen project in Pakistan.
· The joint venture company, Oracle Energy Limited (“Oracle Energy”), which was wholly owned by Oracle, aims to invest in, develop, own and operate a facility for the manufacture of green hydrogen in the Province of Sindh, Pakistan and also undertake its storage, transportation and sale (the “Project”).
· Oracle Energy, a limited liability company incorporated under the laws of Pakistan, will be funded on a 70:30 basis by Kaheel Energy and Oracle Power respectively.
· Kaheel Energy, which is 100% owned by His Highness Shaikh Ahmed Dalmook Al Maktoum, will leverage His Highness’s relevance and influence in new energy generation and infrastructure to rapidly develop the Project through Oracle Energy.
· The joint venture structure is intended to provide a vehicle to support the accelerated development of the Project to meet the growing international and domestic demand of green hydrogen and clean energy. At the same time, this structure will significantly mitigate the early-stage development risk and funding requirement for the Project.
Naheed Memon, CEO of Oracle, commented:
“This is a hugely significant development for Oracle and provides a route through which to establish a ground-breaking green hydrogen project in Pakistan. As shareholders will be aware, the Oracle team has been working hard over the past six months to create a framework and investment path to bring this revolutionary green hydrogen technology to Pakistan, and this joint venture is a landmark development in bringing this to fruition.
“The parties involved will use their combined industry influence, and further build their technical expertise, to move the Project forward at pace. Importantly, this joint venture structure materially de-risks the development process for Oracle Power shareholders whilst ensuring we maintain exposure to this potentially highly valuable initiative.
“Issues relating to green energy and fuel security are high on the agenda worldwide and we are more determined than ever to bring this emerging green fuel source to commercialisation. I look forward to providing updates in due course as we work with His Highness Shaikh Ahmed Dalmook Al Maktoum to move through the feasibility stages of the Project.”
It is intended that Oracle, Kaheel Energy and Oracle Energy (collectively, the “Parties”), shall retain joint operational and management control and Naheed Memon will also be the CEO of Oracle Energy.
The board of Oracle Energy will be the primary forum for discussion and decision making on financial and investment decisions and other key decisions and will act as the forum for stakeholder engagement. The Board will consist of three representatives appointed by His Highness Shaikh Ahmed Dalmook Al Maktoum and two members appointed by Oracle Power.
Kaheel Energy has been issued with 233,330 new ordinary shares at 12 Pakistani Rupees (Rs) per share, (a 20% premium to Oracle’s subscription) in Oracle Energy. Kaheel Energy will be issued shares such that its shareholding is 70% and the remaining 30% will remain with Oracle Power on a pari passu basis.
Kaheel Energy will also have the right to offer for sale the entire share capital of Oracle Energy to an unconnected third party, subject to Oracle Power’s compliance with the AIM Rules for Companies (in relation to its 30% shareholding in Oracle Energy) and in particular AIM Rule 15 . In the event of such a sale, Oracle Power will be entitled to a 20% premium to the value of any investments made (subject to evaluation) or costs incurred for and on behalf of Oracle Energy in addition to the sale price. Oracle will also have the right, within 30 days, to either acquire Kaheel Energy’s shareholding, by itself or with a third party, at a price and/or better terms than those offered or find a third party to acquire all the shares of Oracle Energy at a price and/or better terms than those offered.
For further information:
Oracle Power PLC
Naheed Memon – CEO
+44 (0) 203 580 4314
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