VivoPower announced today that its board of directors has approved an execution plan to spin off the majority of its Caret business unit’s portfolio, representing up to ten solar projects totalling 586MW-DC at varying stages of development.
This does not include the two solar projects (totalling 96.5MW-DC) that were committed to a joint venture valued at $7.7m (representing a valuation of $80,000 per MW-DC).
VivoPower shareholders had previously approved a spin-off of Caret, in whole or part during the Annual General Meeting held in November 2022.
It is intended that VivoPower shareholders receive a special dividend in the form of stock in the spin-off entity. The distribution may qualify as tax-free to VivoPower stockholders for U.S. federal income tax purposes, but shareholders are advised to seek their own tax advice.
The distribution is intended to be made to all VivoPower shareholders of record as of 5:00 p.m. ET on November 6, 2023 (the “record date”). The distribution will ultimately take place in the form of a pro rata stock dividend to each VivoPower shareholder as of the record date. Completion of the spin-off transaction will be subject to various conditions, including all the customary approvals with the distribution date and ratio to be advised subsequent to the fulfilment of conditions and approvals.
The Company will seek approval from VivoPower shareholders to receive the special dividend stock as a result of the spin-off in its next general meeting of shareholders, which is anticipated to be in December 2023 at the latest. Shareholders are encouraged to consult with their financial advisor regarding the specific implications of trading VivoPower ordinary shares prior to or on the distribution date.
For more news & insights, stay tuned to the VivoPower website.