REG - i(x) Net Zero PLC - Conditional Sale of Carbon Engineering

I (X) Net ZeroAnnouncement

16/08/2023 13:00

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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/
(https://url.avanan.click/v2/___https:/ixnetzero.com/___.YXAzOml4bmV0emVybzphOm86MDZmOWFkOWNkMmIyNmQ4NTRiZGQwZWNlNjY1ZWIxNWI6NjozYTJkOjMyODEzYjk5ZWNkMmE1YTMxMTQ5YjZjN2U3MGFkZmRhYmNiMTdlNGVjYjIwOTI1NjBhY2Y0ZWY5ODgxNjhiNzI6cDpU)
 or contact:

 

 i(x) Net Zero                              Via Buchanan below
 Pär Lindström - Chief Executive Officer

 Canaccord Genuity Limited                  +44 20 7523 8000

 Nominated Adviser & Broker
 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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