LONDON, UK: New Energy One Acquisition Corporation (NEOA) introduced its intention to drift on the London Stock Exchange.
NEOA intends to raise as much as £175 million through an providing and subscription for ordinary share capital in reference to Admission.
NEOA has been formed for the aim of effecting a enterprise mixture with targets that are positioned to take part in or profit from the worldwide transition towards a low carbon economy, what’s called the “Energy Transition”, that are headquartered in, or which have or are anticipated to have a substantial nexus to Europe.
NEOA is sponsored by LiveStream LLC (“LiveStream”) and Eni International B.V. (“Eni”), a wholly owned subsidiary of Eni S.p.A. (each of Livestream and Eni being a “Sponsor Entity” and together, the “Sponsor Entities”). LiveStream is an funding firm formed by one of NEOA’s executive directors, Sanjay Mehta.
NEOA has a extremely skilled executive team comprising Sanjay Mehta, David Kotler, Salman Haq and Andrea Mercante (a nominee of Eni) who collectively have greater than 20 years of proprietary fund administration and principal funding experience, and greater than 60 years of extensive capital markets, firm finance and operational expertise within the energy industry.
NEOA’s executive team is supported by a strong group of independent board and strategic advisors with broad market expertise and deep industry contacts, together with with companies that are on the coronary heart of the Energy Transition.
Eni, who will subscribe for at least 10% of NEOA’s ordinary share capital (which may increase to as much as £25 million) and 25% of the sponsor capital, is a main built-in energy firm engaged within the exploration, production, transportation, transformation, and marketing of oil and pure gas.
Eni has a dedication to the Energy Transition and has dedicated to a net zero goal by 2050. Eni has additionally entered proper into a ahead buy settlement granting it the proper to subscribe for as much as 15%, topic to a most of as much as £41 million, of the ordinary shares issued in a private funding in public fairness (a “PIPE”) transaction, to be issued on the time of, and conditional on, completion of a enterprise combination.
Furthermore, Li You Investment Corporation has additionally entered proper into a ahead buy settlement granting Li You Investment Corporation the proper to subscribe for ordinary shares of as much as £15 million, to be issued on the time of a PIPE, and conditional on, completion of the enterprise combination.
Li You Investment Corporation is an funding vehicle which is beneficially owned and managed by Chen Ching-Chih, whose household is the largest shareholder of Wan Hai Lines Ltd, a publicly listed firm on Taiwan Stock Exchange with a market capitalisation of circa US$15 billion, and who’re on the forefront of investing in worldwide shipping with a reduced carbon footprint.
Sanjay Mehta, Executive Director, said: “We are proud to be launching NEOA because the primary SPAC listed on LSE focused on driving the Energy Transition. In order to obtain the net zero targets which have been set globally, and recommitted at COP26 in Glasgow, we have to supercharge decarbonisation of industrial processes, decarbonisation of fossil fuels and produce transition fuels – blue hydrogen, inexperienced hydrogen, inexperienced ammonia at commercial scale and price point. NEOA as a SPAC provides an innovative funding asset class with the capital and industry expertise to make investments in leaders that are integral to accelerating the journey towards net zero commitments.”
David Kotler, Executive Director, said: “We have chosen to list in London because it continues to be a main gateway to draw worldwide capital. With strong authorities support throughout Europe and a substantial pipeline of companies focused on the decarbonisation of fossil fuels, we see nice potential within the sector for a enterprise combination. With an Executive Team that has over 60 years of collective expertise within the sector, and the support of 1 of Europe’s largest energy companies, we’re prepared to create an energy transition leader.”
Francesco Gattei, Chief Financial Officer, Eni, said: “Eni is an built-in energy firm on the forefront of the energy transition. We are concerned in a number of initiatives to make sure the success our ambitious net zero commitments, and our decision to partner with NEOA underlines our dedication to accelerating the near-term decarbonisation of fossil fuels and hard to abate industrial processes.”
Strategic rationale
The Directors believe that the Energy Transition will have a fundamental impact on the energy sector and that there are substantial alternatives for funding in companies that take part within the Energy Transition.
Governments have, and are persevering with to make, significant monetary commitments to the Energy Transition and the sector is supported by legislative and regulatory programmes. This, mixed with significant global decarbonisation necessities to attain carbon neutrality, makes Energy Transition a very attractive funding opportunity.
A discount in carbon emissions from existing sources of electrical energy generation is essential, however the Directors believe that achieving carbon neutrality, or “net zero”, would require changes past energy generation.
The Directors and the management at NEOA believe that significant investments in technology, transition alternative fuels and infrastructure focused on decarbonisation of fossil fuels will be required to obtain 1.5 levels Celsius and net zero targets.
The Directors believe that there are alternatives for a enterprise mixture within, amongst others, the next areas of the Energy Transition sub-sectors: throughout the hydrogen worth chain; inexperienced ammonia; carbon capture, utilisation and storage; new generation sources of clear fuels; digitalisation and energy efficiency; and distribution and transmission of clear fuels.