i(x) Net Zero PLC Conditional Sale of Carbon Engineering (5375J)
August 16 2023 - 7:50AM
UK Regulatory
TIDMIX.
RNS Number : 5375J
i(x) Net Zero PLC
16 August 2023
16 August 2023
i(x) Net Zero PLC
("i(x) Net Zero" or the "Company")
Conditional Sale of Carbon Engineering
i(x) Net Zero PLC (AIM: IX.), the investing company which
focuses on the Energy Transition, is pleased to announce that a
conditional agreement has been reached for the sale of Carbon
Engineering Ltd. ("Carbon Engineering"), to Occidental Petroleum
Corporation ("Occidental"), the international energy company.
Occidental is an existing strategic partner of Carbon
Engineering. The acquisition would see Occidental acquire the
outstanding shares in Carbon Engineering for a total cash
consideration of $1.1 billion, payable in three approximately equal
annual payments with the first to be made at closing.
i(x) Net Zero holds an indirect circa 0.45% interest in Carbon
Engineering through two special purpose vehicles . If the sale
completes on the agreed terms, the Company's indirect interest
would equate to approximately $7.2 million, and subject to the
distribution of the proceeds over the three years following
completion by those SPVs, this would generate a 7.2x return on the
Company's initial investment of $1 million before any costs of the
SPVs. On this basis the sale price would also represent a 2.8x
multiple on the current holding value of the Company's investment
in Carbon Engineering, of $2.6 million.
The sale, which remains subject to certain US and Canadian
regulatory approvals and Canadian Court reviews along with other
customary closing conditions is expected to complete before the end
of 2023 at which point Carbon Engineering will become a wholly
owned subsidiary or Occidental.
Carbon Engineering is a Canadian clean energy company focusing
on the commercialisation of direct air capture technology that
removes carbon dioxide directly from the atmosphere for
sequestration and storage.
The Company will provide a further update in due course, as
appropriate.
- Ends -
For further information visit https://ixnetzero.com/ or contact:
i(x) Net Zero Via Buchanan below
Pär Lindström - Chief Executive
Officer
Canaccord Genuity Limited
Nominated Adviser & Broker +44 20 7523 8000
Max Hartley
Harry Pardoe
Buchanan
Helen Tarbet +44 7872 604 453
Simon Compton +44 7979 497 324
Notes to Editors
About i(x) Net Zero PLC
i(x) Net Zero PLC is an AIM quoted investing company that seeks
to provides its shareholders with the opportunity to create
long-term capital growth with positive, scalable, measurable and
sustainable impact on the environment and on the communities it
serves.
In accordance with its belief that the world's biggest problems
are also the biggest market opportunities, i(x) Net Zero focuses on
two critical areas in which it aims to make a positive impact: (i)
Energy Transition and (ii) Sustainability in the Built
Environment.
The Company uses a multi-strategy investment approach, providing
the companies in which it invests with the expertise and catalytic
capital to help them grow. To date, i(x) Net Zero has invested in
biofuels, direct air capture (carbon removal), renewable energy,
sustainable workforce housing and net zero construction technology
.
i(x) Net Zero is a signatory to the UN Principles for
Responsible Investing.
The Company has received the London Stock Exchange's Green
Economy Mark.
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END
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