African Energy has completed the acquisition of Aviva Corporation’s 1.3bn tonne-resource Mmamantswe Coal Project in Botswana
As part of the deal, African Energy has acquired Aviva’s wholly-owned subsidiary Botswana Energy Solutions, which in turn owned Mmamantswe Coal Project.
The deal, which was subject to certain conditions and approval of the transaction by Aviva shareholders, was worked out after majority of shareholders voted in favour of the transaction.
It also rested on Mmamantswe Coal being recognised as the registered holder of 100 per cent of the project licence. Recently, Aviva had received a ministerial approval from the Botswana government on this. Aviva chief executive officer Lindsay Reed had said that the company was pleased to have obtained ministerial approval satisfying an important condition precedent to the sale of the Mmamantswe Coal Project.
The deal has paved way for African Energy to raise more that US$3mn from private equity investment firm and cornerstone investor in the project, Sentient Executive GP, IV, via the issue of 29.16mn shares. Sentient will also receive an additional 3,541,667 shares in African Energy and become 17.4 per cent stakeholder in the company.