12:05 PM EDT, 06/03/2025 (MT Newswires) -- VivoPower International ( VVPR ) said the planned sale of a 51% stake in its Tembo unit for $200 million to Abu Dhabi-based Energi Holdings passed the second stage of due diligence.

"Both parties now agree to work towards negotiating a final transaction structure and binding transaction documents with a view to an early closing," VivoPower ( VVPR ) said Tuesday in a statement.

The companies also agreed to a Tembo merger with Cactus Acquisition Corp. 1 (CCTS), a blank-check company, for a separate public listing, VivoPower ( VVPR ) said.

"The VivoPower ( VVPR ) board will concurrently evaluate the optimal use of investment proceeds, which may include the return of capital or the payment of a special dividend to shareholders," according to the statement.

VivoPower ( VVPR ) shares rose 14% in recent trading Tuesday.

Price: 4.88, Change: +0.59, Percent Change: +13.75