Chariot Limited undertakes strategic review of transitional power division
Chariot Limited (AIM: CHAR), a company focused on transitioning energy resources across Africa, has announced a strategic review of its Transitional Power division. This division is dedicated to delivering sustainable power and water solutions across the continent, emphasizing renewable energy generation projects and electricity trading, particularly within the South African energy market.
Since 2020, Chariot has developed a broad portfolio spanning natural gas, renewables, and green hydrogen. However, the evolving nature of these divisions and their differing capital requirements have led to a reevaluation of the Transitional Power division’s future. Given the immediate and medium-term funding necessities to unlock the division’s potential, management is actively exploring various debt and equity financing options. Indications of interest from investors focusing on the South African energy sector have prompted this strategic review, aiming to ascertain the most beneficial course of action for the company and its shareholders. Options under consideration include a full or partial sale, a demerger of the Transitional Power business, or maintaining the division within the Chariot group.
While the Transitional Power division undergoes this period of evaluation, Chariot’s commitment to its Green Hydrogen division remains steadfast, with ongoing efforts to secure financing at the subsidiary level continuing unabated.
Adonis Pouroulis, CEO of Chariot, expressed pride in the achievements of the Transitional Power division and the broader company efforts over the past three years. Pouroulis emphasized that the strategic review aligns with the company’s dedication to stakeholder interests, aiming to enhance value from the division while fostering its growth and development. This review coincides with a renewed concentration on Chariot’s natural gas development projects in Morocco, highlighting a medium-term strategy geared towards generating and returning capital to shareholders through gas revenues.
Chariot Limited’s strategic review of its Transitional Power division marks a critical juncture for the company as it navigates the complexities of funding and growth within the renewable energy sector. This move underscores the challenges and opportunities within the transitional energy landscape, highlighting the need for adaptable strategies that maximize shareholder value while contributing to sustainable development goals. As Chariot explores its options, the outcome of this review could provide valuable insights into the dynamics of energy financing and development in Africa.