VivoPower Spin-off Notes

 

November 2, 2023 Update

On October 27, 2023, VivoPower announced that it will spin off the majority of its Caret business.

 

This is from a Market Watch Article:

VivoPower International said its board of directors has approved an execution plan to spin off the majority of its Caret business unit’s portfolio, representing up to 10 solar projects totaling 586 megawatts at varying stages of development.

The spinoff doesn’t include the two solar projects that were committed to a joint venture valued at $7.7 million.

VivoPower shareholders had previously approved a spinoff of Caret, in whole or part, during the Annual General Meeting held in November 2022. It is expected that the shareholders will receive a special dividend in the form of stock in the spun-off entity.

The company will seek the approval from VivoPower shareholders to receive the special dividend stock as a result of the spinoff in its next general meeting of shareholders, which is expected to be in December 2023 at the latest.

 

According to Koykin, VivoPower is a $5MM market cap / $40MM EV company with $15MM of sales and negative $5MM of EBITDA.

Here is a description of the company:

VivoPower International PLC, together with its subsidiaries, operates as a sustainable energy solutions company in Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates. It operates through Critical Power Services, Electric Vehicles, Sustainable Energy Solutions, and Solar Development segments. The Critical Power Services segment offers energy infrastructure generation and distribution solutions, including the design, supply, installation, and maintenance of power and control systems to a range of government, commercial, and industrial customers. The Electric Vehicles segment designs and builds electric battery conversion kits to replace internal combustion engines for customers in the mining, infrastructure, utilities, and government services sectors. The Sustainable Energy Solutions segment engages in the design, evaluation, sale, and implementation of renewable energy infrastructure. The Solar Development segment comprises solar projects. The company was founded in 2014 and is headquartered in London, the United Kingdom.

This spin-off transaction doesn’t look that interesting at a high level given the company isn’t profitable.