Kistos Holdings PLC announced on Tuesday the successful completion of its acquisition of EDF Energy (Gas Storage) Ltd. for £25 million, marking a significant expansion in its portfolio. The deal, integral to Kistos’ strategic growth, involves the transfer of two key gas storage facilities in Cheshire, northwest England, from EDF Energy, a subsidiary of the French energy conglomerate.
Kistos Completes £25M Buy Of EDF Unit : Acquisition Fuels Expansion
Kistos, a dynamic player in the energy market, secured this acquisition under the scrutiny of national security protocols, demonstrating compliance with the stringent standards of the National Security And Investment Act of 2022. This law mandates government notification for transactions in sensitive industries, including advanced materials and artificial intelligence.
The purchase includes the Hill Top Farm facility, which is poised to support up to 11% of the UK’s daily gas needs. Kistos aims to bring the currently non-operational second site, Hole House Farm, back to serviceability, emphasizing its commitment to enhancing energy security and operational efficiency.
Funding and Advisory
Funded through its own cash reserves, Kistos navigated the financial aspects of the deal independently. While EDF engaged Burges Salmon LLP for advisory services, Kistos opted to keep its counsel information private. This strategic move by Kistos not only diversifies its holdings in the energy sector but also reinforces its position on the AIM, London’s junior stock market.
Strategic Implications for Kistos and EDF
Andrew Austin, the executive chair of Kistos, highlighted the potential for repurposing the new assets to accommodate innovative energy storage solutions, such as compressed air or hydrogen. This adaptability is key to Kistos’ forward-looking strategy in the energy transition trend.
