LONDON, UK: Hydrogen Utopia International PLC (HUI), a company that converts waste plastic into hydrogen and other green fuels, has announced a deal to acquire a leading bio-energy company for £500m.

The unnamed target company, which produces and sells biofuels and its bi-products, has revenues of over EUR 365m and profits of over EUR 40m, according to its latest accounts.

The deal will give HUI access to land in Europe with permits for building a waste plastic to hydrogen facility, as well as a number of operational plants in different countries.

HUI’s board said the acquisition was a “strong strategic fit” and a “transformational value-creating opportunity” for its shareholders.

The deal will be partly paid by issuing new HUI shares to the target’s shareholders, valued at £0.09 each. Existing HUI shareholders will also receive 3p cash for every share they hold.

If HUI’s technology meets certain criteria within three years of the first hydrogen facility site being ready, HUI shareholders will receive an additional two shares in the re-admitted company for each share they hold.

The deal is subject to due diligence, regulatory approvals, and a waiver of the takeover rules by the Panel on Takeovers & Mergers. The deal also requires the approval of HUI’s independent shareholders in a general meeting.

The acquisition is a reverse takeover, meaning that HUI will apply to retain its listing on the London Stock Exchange’s standard segment after the deal is completed.