VivoPower International PLC experienced a sharp decline in its stock price, dropping 9.8% during premarket trading on Thursday, subsequent to revealing a definitive agreement to purchase OGDC Pte Ltd. The acquisition targets OGDC, a firm specializing in artificial intelligence-focused data center infrastructure and holding powered land assets across Finland.
Headquartered in London, VivoPower outlined that the acquisition would involve approximately $13 million in cash payable upon deal closure anticipated in February 2026. Furthermore, it will issue contingent value rights convertible into shares at a price of $15 per share, contingent on achieving successful grid connections.
This deal imparts to VivoPower an economic stake in 291 megawatts of strategically important land within Finland, with expectations that grid connectivity will be established within a 12-month horizon from closing. The crux of this acquisition is the access to renewable hydropower with rates below 4 cents per kilowatt-hour, a key enabler for both high-density AI training and inference workloads economically.
OGDC’s leadership, comprising three co-founders bringing collectively over 75 years of combined experience in institutional real estate and infrastructure management, will join VivoPower’s senior management team as part of the transaction integration.
Kevin Chin, the Executive Chairman and CEO of VivoPower, highlighted the deal structuring as purposefully aligned to ensure incentive compatibility and to avert shareholder dilution. The structure offers potential for accretion in shareholder value upon milestone achievements.
The acquisition is complemented by VivoPower’s planned financing scheme aiming to limit equity dilution. This approach incorporates a mix of project finance debt, mezzanine financing, and the refinancing of stabilized assets. The targeted capital structure is composed of 65% senior debt, 15% mezzanine finance, and 20% equity, reflecting a leveraged financing strategy optimized to fund the acquisition and subsequent development.
Despite management’s outlook that anticipates the acquisition to enhance operational capabilities and value creation, investors expressed reservations primarily due to the protracted closing timeframe and the extended period before grid connectivities are realized. These factors contributed materially to the stock’s negative reaction in early trading sessions.