5-year agreement targeting 200 vehicle conversions in first year and 1,600 over five years

Provides local sales, service, and maintenance, further boosting Tembo’s position in the East African market, a population exceeding 500 million people

AVA’s vehicle assembly facilities have the capacity to assemble 30,000 vehicles per annum

AVA currently assembles vehicles for leading OEMs including Toyota, Fuso, Proto, Hino, Mahindra, Scania, Tata, Volvo and Daewoo

Established in 1975, AVA is the only assembler in the region to have achieved IATF16949 Certification

 

VivoPower announced today that its subsidiary, Tembo e-LV, has signed a Heads of Agreement with Associated Vehicle Assemblers (AVA), East Africa’s market-leading vehicle assembler.

The Agreement covers Kenya, Tanzania, and other East African nations. With a population exceeding 500 million people, East Africa is the largest sub-region in Africa and home to the United Nations headquarters for Africa.

Under the terms of the Agreement, AVA is empowered to both distribute and locally assemble Tembo’s 100% electric utility vehicle (EUV) solutions across East Africa for customers in the mining, agriculture, energy, safari, non-government organisation (NGO), defence, and government sectors. Crucially, it provides customers and partners in the East African region with local maintenance and support capabilities. This Agreement augments a previous partnership agreement that Tembo signed with ETC Group in relation to Kenya specifically.

The Agreement reflects both companies’ commitment to supporting Kenya’s transition to sustainable transportation and creating value and jobs in local economies across East Africa.

“We are seeing an acceleration in demand for electric vehicles across East Africa, from both government and private sector companies,” stated Matt Lloyd, CEO of AVA. “Having conducted an expansive review of electric conversion companies, we selected Tembo based on their experience, their cultural adaptability as well as the fact they have the most competitively priced products and solutions which also meet our quality and safety standards.   Our team is excited to welcome Tembo’s engineers to Kenya in April 2025 as we kickstart the first assemblies for the Kenya market.”

“With the new and reduced pricing for our next-generation EUV25 electric conversion kits, we have seen a surge in interest from new and existing customers and partners.  This is a direct consequence of Tembo’s strategy to diversify and strengthen its supply chain which has translated into a significant reduction in costs, without sacrificing quality and safety,” commented Matthew Nestor, Tembo’s Head of Partnerships and Sales.  We are delighted to have been selected to partner with AVA, who are the pre-eminent vehicle assembler in East Africa.”

Kevin Chin, Executive Chairman and Chief Executive Officer of VivoPower, stated, “We are honoured to be partnering with AVA. This is part of a considered and patient strategy we have been executing upon globally to identify and build partnerships with long-established and credible leaders in their respective markets who are genuinely aligned in terms of values and like us, have a long-term commitment to deliver electrification solutions and transformation to entire nations.”

To read our full press release, and to keep up with all of VivoPower’s releases, visit the Press Releases page.

About AVA

Associated Vehicle Assemblers Ltd. (AVA) is East Africa’s leading vehicle assembler, with decades of experience in producing high-quality vehicles tailored to meet the unique needs of the region. Based in Mombasa, AVA has established itself as a trusted partner for global automotive brands, providing state-of-the-art assembly services and technical expertise. AVA’s commitment to quality, innovation, and sustainability has made it a key player in Kenya’s automotive industry, driving economic growth and supporting the transition to more sustainable transport solutions. As a pioneer in the region, AVA continues to lead the way in assembling vehicles that meet the highest global standards while catering to local market demands.

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EUV25 EPower kit is the next-generation electric conversion kit for Landcruisers

Automechanika Dubai to be held from 10-12 December 2024

Estimated 60,000 attendees from over 160 countries registered to attend

Automechanika Dubai is the largest automotive aftermarket solutions show in the region

Tembo to follow up by hosting regional off-road drive days in the first quarter of calendar 2025

 

Tembo e-LV, a subsidiary of Nasdaq-listed B Corporation, VivoPower, is pleased to announce that it will be launching its next-generation EUV25 EPower conversion kit for Landcruisers at Automechanika Dubai 2024.

The EUV25 EPower kit is the latest electric conversion kit for Landcruisers, specifically designed to accommodate rugged off-road terrain and conditions, as well as heavy payload.

Tembo will be joining forces with the market-leading UAE-based sustainable transport solutions company, ONE MOTO, at Automechanika Dubai from 10 to 12 December 2024, which will be held at the Dubai World Trade Centre.

Tembo’s EUV25 builds on the legendary design of the Land Cruiser LC70, which has been an iconic and ubiquitous mode of transportation in the UAE and the broader Gulf Cooperation Council (GCC) region. Because of its rugged reliability and adaptability to challenging terrains, the LC70 has secured its place as the vehicle of choice traversing vast deserts, remote areas, and mountainous landscapes. Its durable design and ability to withstand extreme temperatures has made it indispensable for industries such as oil exploration, agriculture, and logistics.

Automechanika Dubai 2024 is the largest international trade show for the automotive aftermarket industry in the Middle East, Africa, and South Asia region. It provides a platform for industry professionals, manufacturers, and suppliers to network, showcase innovations, and explore opportunities in the rapidly evolving automotive sector.

This year’s event will feature over 2,200 exhibitors from 161 countries, spanning 17 halls. Key highlights include specialised sections for tyres, batteries, telematics, diagnostics, and EV-related technologies, reflecting the industry’s shift toward sustainability.

Chris Mallios, Chief Commercial Officer of VivoPower said: “We are delighted to be launching the EUV25 EPower conversion kit in one of the fastest growing regions in the world. We are grateful to be showcasing the kit in collaboration with the ONE MOTO team at Automechanika Dubai 2024. This collaboration reflects our shared commitment to driving innovation and adoption of electric vehicle technologies. By combining our expertise, we aim to showcase cutting-edge yet cost effective solutions that address the growing demand for sustainable mobility in the region”.

To read our full press release, and to keep up with all of VivoPower’s releases, visit the company's Press Releases page.

About ONE MOTO

ONE MOTO is a pioneering electric vehicle company specialising in sustainable transport solutions for urban mobility and last-mile delivery. With a strong presence across the globe, ONE MOTO’s mission is to transform cities by providing zero-emission, cost-effective electric motorcycles for businesses and consumers alike. By leveraging advanced data technology and a passion for sustainability, ONE MOTO is paving the way for a cleaner, smarter future in urban transport.

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Investment commitment secured from private investment office backed by member of ruling Al Maktoum family of Dubai

Initial US$7.5m investment milestones previously met as part of US$10 million commitment

Tembo has now met milestones to qualify for the final follow-on investment of US$2.5 million, for an aggregate total investment of US$10 million

VivoPower is pleased to announce that its subsidiary, Tembo e-LV, has now met all the milestones to obtain the final follow-on strategic direct equity investment into Tembo, at a pre-money valuation of US$120 million.

This is pursuant to a commitment received in June 2023 from a UAE-based private investment office backed by a member of the ruling Al Maktoum family of Dubai. The investor, under the agreement terms, can exercise the option to increase its cumulative investment in subsequent closings, up to US$10 million based on milestones which have now all been met.

VivoPower will continue to retain its majority stake in Tembo. Tembo recently announced a binding heads of agreement to execute a business combination agreement with CCTS, a NASDAQ listed SPAC at an indicative pre money equity valuation of US$838m.

To read our full press release, and to keep up with all of VivoPower’s releases, visit our Press Releases page.

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Tembo E-LV (“Tembo”), a subsidiary of VivoPower International PLC (“VivoPower”), will merge with CCTS (“Cactus Acquisition Corp. 1 Limited”), a NASDAQ-listed company.

Tembo will be the surviving entity and upon closing, will change its name to Tembo Group.

CCTS has $25m of cash on its balance sheet, as of its last quarterly filing.

VivoPower shareholders on the final record date will receive 5 Tembo Group shares for each 1 VivoPower share held.

Final Business Combination Agreement, an independent fairness opinion to be finalised by early May 2024 with the merger targeted for completion by August 2024.

Tembo, a global leader in utility vehicle electrification, and a subsidiary of VivoPower International, today announced it has entered into a binding heads of agreement whereby it will exclusively negotiate to consummate a business combination agreement to merge with Cactus Acquisition Corp. 1 Limited (CCTS), a special purpose acquisition company.

Upon closing of a business combination, the combined company is expected to remain NASDAQ listed under the name “Tembo Group”.

Key Terms of the Agreement

• A business combination between CCTS and Tembo will be effected through the merger of CCTS with and into Tembo, with Tembo surviving the merger. Upon the closing of the acquisition, Tembo will change its name to “Tembo Group”.
• CCTS will issue 83.8 million shares in exchange for Tembo shares at $10 per CCTS share. This corresponds to a pre-money indicative equity valuation of Tembo of $838 million.
  
  Contemporaneously with the closing of the transactions contemplated by the BCA, VVPR will issue a dividend on a pro rata basis to VVPR stockholders as follows:
  
  (a) An amount equal to ten percent (10%) of the aggregate Merger Consideration Shares (the “Tembo Dividend Shares”) to VivoPower shareholders as at a record date of 30 April 2024 (First Record Date); and
  
  (b) An additional amount equal to another ten percent (10%) of the aggregate Tembo Dividend Shares to VivoPower shareholders who were registered on the record date of 30 April 2024 and still hold their VVPR shares as at 30 June 2024 (Second Record Date); and
  
  (c) The Tembo Dividend Shares will be subject to a lock up period of 6 months post listing of Tembo Group.

  A total of 16.76 million Tembo Dividend Shares, representing 20% of the 83.8 million shares, will be distributed to VVPR shareholders. VVPR shareholders will receive indicatively 5 Tembo Dividend Shares for each VVPR share they hold, assuming no further VVPR share issuance and warrants conversion prior to the First Record Date and Second Record Date

• The transaction is subject to final execution of a Business Combination Agreement.
  An independent fairness opinion will also be completed and filed together with the F-4.
• All cash remaining in CCTS’s Trust account immediately after the closing of the business combination will be available to the surviving entity for working capital, growth, and other general corporate purposes.
• The Business Combination Agreement incorporating a fairness opinion is expected to be completed in May 2024, whilst the transaction is targeted to close in August 2024.

Additional information about the proposed merger, including a copy of the merger agreement and other material documentation will be filed with the SEC and available at www.sec.gov. An S-4 registration statement will also be filed with the SEC, which will contain a proxy statement/prospectus in connection with the business combination.

Chardan Capital Markets LLC is acting as financial advisor to VivoPower and Tembo on this transaction.

For the full version of the article, visit the VivoPower Press Releases page.

About Cactus Acquisition Corp. 1 Limited

Cactus Acquisition Corp. 1 Limited is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination.  For more information, visit https://cactusac1.com.

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