- AWN Holdings’ (AWN) partially-owned electric vehicle and power services company, VivoPower, has acquired the remaining 49 per cent of Tembo
- Tembo is a European battery-electric and off-road vehicle company that services many industries globally
- VivoPower initially acquired 51 per cent of Tembo in October last year as part of its strategy of expanding outside of the Australian market
- This full acquisition follows VivoPower and Tembo recently signing a US$250 million (roughly A$328.4 million) with GB Auto
- GB Auto is now Australia’s exclusive distributor for the Tembo electric Toyota Land Cruiser, electric Toyota Hilux and Tembo electric vehicle conversion kits
- AWN’s shares are up 14.5 per cent and trading at $1.58 at market close
AWN Holdings’ (AWN) 46.8 per cent-owned subsidiary, VivoPower, has acquired the remaining 49 per cent of Tembo.
Tembo is a Netherlands-based specialist battery-electric and off-road vehicle company that designs and builds electric vehicle (EV) solutions for customers across in the global mining, infrastructure, utilities, government services, game safari and humanitarian aid sectors.
The battery technology, EV and power services company initially acquired a 51 per cent interest in Tembo in October last year. This was part of its strategy to roll out its sustainable energy solutions offering with an initial focus on the global mining, infrastructure and utilities sectors.
The total acquisition is also part of VivoPower’s goal of expanding into the global market for electric light vehicles (ELV) and sustainable energy solutions beyond the Australian mining, infrastructure, commercial fleet and government sectors.
AWN’s subsidiary paid Tembo US$2.2 million (roughly A$2.8 million) and 15,793 VivoPower shares for their residual post money shareholding.
“Our intention has always been to move to 100 per cent ownership of Tembo and the GB Auto deal has enabled this to occur at least two years ahead of plan. We are pleased to be able to fund this from existing cash reserves and the issuance of 15,793 VivoPower shares to Tembo’s management shareholders,” VivoPower Executive Chairman and CEO Kevin Chin said.
Additionally, VivoPower and Tembo recently signed a deal for GB Auto to be Australia’s exclusive distributor for the Tembo electric Toyota Land Cruiser, electric Toyota Hilux and Tembo electric vehicle conversion kits.
It’s expected GB Auto will buy at least 2000 Tembo electric conversion kits in the first four years of the seven-year agreement. When combined with the value of the converted Toyota vehicles, the partnership is expected to generate up to US$250 million (roughly A$328.4 million) in revenue over the first four years.
Now, VivoPower plans to invest US$10.9 million (around A$14.3 million) into Tembo which will allow it to scale up its assembly, manufacturing and distribution capabilities to support customer orders and deliveries.
AWN’s shares are up 14.5 per cent and trading at $1.58 at market close.