Energy: Chariot to sell one of its subsidiaries to focus on gas assets in Morocco

UK Company Chariot has decided to conduct a strategic review of its “Transitional Power” division which is present in South Africa, providing sustainable power and water solutions in renewable energy generation and electricity trading.

Since 2020, Chariot has built a transitional energy group spanning natural gas, renewables, and green hydrogen. As these divisions have grown, they have increasingly attracted different pools of capital and transitional power, which is now focused on the South African energy market, requires funding in the near and medium term to fulfil its potential.

Management has been progressing debt and equity financing options at the subsidiary level and has received indications of potential interest from South Africa focused investors to fund the Transitional Power business, said Chariot in a press release issued Monday.

Whilst there is no certainty that a funding package will be concluded, Chariot has decided to undertake this review to explore the options available to the Company, which may involve a full or partial sale or demerger of the Transitional Power business or the division remaining part of the Chariot group.

Chariot’s Green Hydrogen division will remain part of the Group and management continues to progress financing options at the subsidiary level.

Chariot CEO Adonis Pouroulis said: “this review comes at a time of renewed focus on our near-term natural gas development assets in Morocco with the medium-term ambition of returning capital to shareholders from gas revenues”.