- Hydrogen Utopia International PLC, a pioneer in converting non-recyclable waste plastic into hydrogen and other clean fuels, has announced the suspension of its acquisition of Essential Energy due to new financial disclosures.
- The previously agreed terms of the acquisition are under review after recent financial information raised concerns about Essential Energy’s valuation.
Hydrogen Utopia International PLC (HUI), known for its innovative approach to transforming non-recyclable mixed waste plastic into hydrogen, clean fuels, and renewable heat, has paused its planned acquisition of Essential Energy Holding Group Corp. The decision follows the receipt of new financial data from Essential Energy that prompted further scrutiny and raised questions regarding its valuation.
Originally, on February 23, 2024, HUI had signed heads of terms to acquire the entire issued share capital of Essential Energy, a deal that was initially valued at approximately £500 million. Essential Energy was described in announcements on February 26, 2024, as a substantial and profitable bio-energy firm with revenues surpassing EUR 365 million and pre-tax profits of EUR 40 million, based on figures attested by its CEO and CFO.
However, the recent financial information supplied by Essential Energy has led to significant concerns that could materially affect the company’s valuation. As a result, the terms of the acquisition are being reevaluated, and the completion of the deal remains uncertain.
HUI is continuing its investigation into the new financial disclosures and is in discussions with Essential Energy to explore these findings further. At this stage, there is no guarantee that the proposed acquisition will proceed, nor what the final terms might entail. This development reflects HUI’s commitment to thorough due diligence and its strategic caution in pursuing significant acquisitions.
About Hydrogen Utopia International PLC
HUI aims to become one of the leading new European companies specialising in turning non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, new materials or distributed renewable heat.
A HUI facility uses non-recyclable mixed waste plastic as feedstock and turns it into syngas from which new products and energy can be produced. HUI anticipates that its revenues will be derived from a variety of sources, dependent upon location and configuration of the HUI facilities, including the sale of syngas, hydrogen and other gases, electricity and heat sales, and the payment to it of fees for a given quantity of non-recyclable mixed waste plastic received at a HUI facility.
HUI will target areas where there is significant private sector interest or potential, financial backing is accessible and or where substantial EU and/or government funded sources of grants and loans are or may be available. The global increase in fossil fuel-based energy prices reinforces the need for alternative, price competitive energy sources, which HUI’s business model can provide.
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