Sept 17 (Reuters) - Power infrastructure developer

VivoPower International ( VVPR ) said on Tuesday it has signed a

non-binding agreement to merge with Canada's Future Automotive

Solutions and Technologies (FAST), which would create a $1.13

billion combined company.

The agreement values VivoPower's ( VVPR ) equity at $556 million and

FAST at $578 million, and allows the companies an exclusive

period of 90 days to reach a definitive agreement, U.K.-based

VivoPower ( VVPR ) said.

Shares of VivoPower ( VVPR ) were down 2.3% in early trading after

the deal with FAST, which converts traditional internal

combustion engine vehicles to run on hydrogen.

A key condition for the deal is the completion of a $904

million merger between VivoPower's ( VVPR ) unit, Tembo E-LV, and blank

check firm Cactus Acquisition, VivoPower ( VVPR ) said.

Tembo specializes in electric-battery and off-road vehicles

for sectors including mining, utilities, infrastructure,

government services and humanitarian aid.