New Energy One Acquisition Corp announces £175mn offering on LSE

New Energy One Acquisition Corp announces £175mn offering on LSE

LONDON, UK: New Energy One Acquisition Corporation (NEOA) announced its intention to float on the London Stock Exchange.

NEOA intends to raise up to £175 million through an offering and subscription for ordinary share capital in connection with Admission.

NEOA has been formed for the purpose of effecting a business combination with targets that are positioned to participate in or benefit from the global transition towards a low carbon economy, what is called the “Energy Transition”, which are headquartered in, or which have or are expected 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 investment company formed by one of NEOA’s executive directors, Sanjay Mehta.

NEOA has a highly experienced executive team comprising Sanjay Mehta, David Kotler, Salman Haq and Andrea Mercante (a nominee of Eni) who collectively have more than 20 years of proprietary fund management and principal investment experience, and more than 60 years of extensive capital markets, corporate finance and operational experience in 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, including with companies that are at the heart of the Energy Transition.

Eni, who will subscribe for at least 10% of NEOA’s ordinary share capital (which may increase to up to £25 million) and 25% of the sponsor capital, is a major integrated energy company engaged in the exploration, production, transportation, transformation, and marketing of oil and natural gas.

Eni has a dedication to the Energy Transition and has committed to a net zero target by 2050. Eni has also entered into a forward purchase agreement granting it the right to subscribe for up to 15%, subject to a maximum of up to £41 million, of the ordinary shares issued in a private investment in public equity (a “PIPE”) transaction, to be issued at the time of, and conditional on, completion of a business combination.

Furthermore, Li You Investment Corporation has also entered into a forward purchase agreement granting Li You Investment Corporation the right to subscribe for ordinary shares of up to £15 million, to be issued at the time of a PIPE, and conditional on, completion of the business combination.

Li You Investment Corporation is an investment vehicle which is beneficially owned and controlled by Chen Ching-Chih, whose family is the largest shareholder of Wan Hai Lines Ltd, a publicly listed company on Taiwan Stock Exchange with a market capitalisation of circa US$15 billion, and who are at the forefront of investing in international shipping with a reduced carbon footprint.

Sanjay Mehta, Executive Director, said: “We are proud to be launching NEOA as the first SPAC listed on LSE focused on driving the Energy Transition. In order to achieve the net zero targets that have been set globally, and recommitted at COP26 in Glasgow, we need to supercharge decarbonisation of industrial processes, decarbonisation of fossil fuels and produce transition fuels – blue hydrogen, green hydrogen, green ammonia at commercial scale and price point. NEOA as a SPAC provides an innovative investment asset class with the capital and industry expertise to invest 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 as it continues to be a major gateway to attract international capital. With strong government support across Europe and a considerable pipeline of companies focused on the decarbonisation of fossil fuels, we see great potential in the sector for a business combination. With an Executive Team that has over 60 years of collective experience in the sector, and the support of one of Europe’s largest energy companies, we are ready to create an energy transition leader.”

Francesco Gattei, Chief Financial Officer, Eni, said: “Eni is an integrated energy company at the forefront of the energy transition. We are involved in several initiatives to ensure the success our ambitious net zero commitments, and our decision to partner with NEOA underlines our commitment 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 opportunities for investment in companies that participate in the Energy Transition.

Governments have, and are continuing to make, significant financial commitments to the Energy Transition and the sector is supported by legislative and regulatory programmes. This, combined with significant global decarbonisation requirements to reach carbon neutrality, makes Energy Transition a particularly attractive investment opportunity.

A reduction in carbon emissions from existing sources of electricity generation is essential, but the Directors believe that achieving carbon neutrality, or “net zero”, will require changes beyond power generation.

The Directors and the leadership at NEOA believe that significant investments in technology, transition alternative fuels and infrastructure focused on decarbonisation of fossil fuels will be required to achieve 1.5 degrees Celsius and net zero targets.

The Directors believe that there are opportunities for a business combination within, among others, the following areas of the Energy Transition sub-sectors: across the hydrogen value chain; green ammonia; carbon capture, utilisation and storage; new generation sources of clean fuels; digitalisation and energy efficiency; and distribution and transmission of clean fuels.

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