Pure One Corporation Limited is set to exit its 40% stake in Turquoise Group for AUD 5 million, securing a substantial profit and refocusing on its core clean energy ventures.
- Sale of entire 40% equity interest in Turquoise Group for AUD 5 million
- Transaction expected to yield approximately AUD 3.4 million profit
- Payment split, AUD 3.5 million on completion, AUD 1.5 million within 12 months
- Completion contingent on due diligence and Turquoise Group securing funding
- Strategic move to sharpen focus on zero-emission mobility and clean energy
Strategic Divestment
Pure One Corporation Limited (ASX – P1E) has announced a significant step in its strategic evolution by agreeing to sell its entire 40% stake in Turquoise Group Pty Ltd for AUD 5 million. This move marks a clear exit from a non-core investment, allowing Pure One to concentrate its resources and capital on its primary focus areas of zero-emission mobility and clean energy technologies.
The deal is structured with AUD 3.5 million payable upon completion and a further AUD 1.5 million due within 12 months, with an option for Turquoise Group to extend this payment period by an additional year at a 15% annual interest rate. Turquoise Group has indicated plans to bring in a third-party investor to support the funding required to complete the buy-back.
Financial Impact and Conditions
Pure One expects the transaction to deliver a profit of approximately AUD 3.4 million, a strong return on its investment in Turquoise Group. Completion of the sale is subject to customary conditions, including legal and tax due diligence, compliance with relevant corporate regulations, and Turquoise Group securing sufficient funding. The company anticipates closing the deal within 90 days of signing the binding term sheet.
Upon completion, all existing agreements between Pure One and Turquoise Group will be terminated, and Pure One will relinquish any ownership interest in Turquoise Group, fully divesting from the business.
Strategic Focus Moving Forward
Managing Director Scott Brown emphasized that this transaction aligns with Pure One’s disciplined capital allocation strategy. By divesting from Turquoise Group, Pure One can redeploy capital into areas more closely aligned with its growth objectives, particularly in battery-electric vehicles, battery-swap solutions, and hydrogen fuel technologies.
Pure One continues to develop natural gas projects domestically and through its investment in Botswana-based Botala Energy, while also incubating early-stage clean energy ventures to generate future profits. This sale underscores the company’s commitment to sharpening its strategic focus and enhancing shareholder value.
Bottom Line?
Pure One’s profitable exit from Turquoise Group signals a sharper focus on core clean energy ambitions, but execution risks remain as funding and due diligence unfold.
Questions in the middle?
- Will Turquoise Group secure the necessary funding to complete the buy-back on schedule?
- How will Pure One redeploy the capital from this sale to accelerate growth in its core technologies?
- What impact will this divestment have on Pure One’s longer-term financial and operational outlook?