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(Alliance News) - Kibo Energy PLC on Friday said its subsidiary Mast Energy Developments PLC has extended the completion long-stop date for its first joint venture agreement.
Shares in Mast Energy were down 17% to 1.33 pence each in London on Friday late morning, while Kibo shares were down 9.1% to 0.050 pence each in London and flat at ZAR0.02 each in Johannesburg.
Kibo Energy is a Galway, Ireland-based company with energy projects in Africa and the UK, while Mast Energy is a London-based company which operates reserve power generation plants in the UK.
Kibo Energy said the revised completion date for Mast Energy is now expected to be mid-October, allowing for the JV investor consortium to complete the compulsory statutory process.
Earlier this month, Mast Energy said it extended the long-stop date to Thursday this week.
Mast Energy remains confident that the transaction will be completed and continues with the investor consortium, according to Kibo Energy.
"Whilst the company is clearly disappointed at these ongoing delays in finalising completion of the investment into [Mast Energy], we remain in continuous dialogue with the investor consortium and continue to be assured by them of their commitment to make this investment and to complete the transaction as soon as possible," said Chief Executive Officer Louis Coetzee.
Mast Energy noted that the compulsory statutory process and timelines associated remain "beyond the control of the company and the JV investor who remains fully committed to see this completed at the earliest possible date".
It said both parties have "full confidence" that the transaction will complete, but noted that Seira Capital Ltd remains contractually bound under the JV agreement and is in breach of its obligations.
Should the investor consortium fail to complete the transaction around the latest completion extension date, Mast Energy said it will consider all its options. This includes commencing legal proceedings against Seira and affected parties, as well as alternative investment opportunities.
"We remain confident that the investor consortium will be able to complete the transaction and the board have also received written reassurance from the investor consortium in this regard," said Mast Energy Chief Executive Officer Pieter Krugel.
At the start of August, Mast Energy extended the long stop date to August 31. The first extension was because the principal of Seira Capital - Mast Energy's JV lead investor partner - was seriously injured in a road accident.
By Greg Rosenvinge, Alliance News reporter
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