Rabat – Chariot, an energy firm with a focus on Africa and expertise in transitional power, issued a press release today announcing a strategic evaluation of its Transitional Power division.
The same source added that the business made this decision as part of a short and medium-term emphasis on its natural gas development assets in Morocco.
“I am very proud of our work across our Transitional Power division and wider business over the past three years,” said Chariot CEO Adonis Bouroulis.
The Transitional Power division, which comprises initiatives including the generation of renewable energy and the trade of electricity, is said to be concentrated on offering sustainable energy and water solutions in Africa.
Bouroulis emphasized that starting this strategic assessment is “in the best interests of all stakeholders,” as the company seeks to capture value from this division while enabling it to continue its ongoing growth and development. This is especially important given the impending finance requirements needed to complete projects from the portfolio.
“This review comes as we refocus on our natural gas development assets in Morocco in the short and medium term, with our medium-term ambition to deliver a return on investment to our shareholders from gas revenues,” Bouroulis explained.
Natural gas, renewable energy sources, and green hydrogen are all included in the Transitional Energy Group that Chariot established in 2020. As these divisions have grown, they have increasingly attracted different pools of capital.
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In order to reach its full potential, the Transitional Energy division—which is now concentrating on the South African energy market—needs finance in the short and medium term.
The company’s management has been working on debt and equity financing alternatives for its subsidiaries, and they have received signals that investors with a focus on South Africa may be interested in funding the Transition Energy company.
Management has chosen to carry out this strategic assessment in order to investigate the several possibilities accessible to the firm, even if there is currently no certainty surrounding the execution of a finance deal.
The goal of this strategic assessment is to maximize value for Chariot shareholders, and options may include selling or spinning off Chariot Transition Energy or keeping this division under the umbrella of Chariot Group Limited.
In addition, Chariot’s green hydrogen division will remain part of the Group, and management will continue to develop financing options at the subsidiary level.
Although there is no guarantee that this strategic assessment will lead to a transaction, management will keep weighing all of the possibilities and the company will give more updates and details as needed.
