PHOSPHATE miner AsiaPhos has inked a non-binding term sheet to acquire a 76.59 per cent stake in Helio Energy Two, a Taiwan-based solar assets owner and operator.

The deal is worth US$3.5 million.

Helio Energy’s primary business activities comprise renewable energy development and solar asset management.

On Monday (Oct 9), AsiaPhos said its proposed acquisition will enable the group to work towards diversifying away from its Chinese mining as well as phosphate processing business, and into a “more long term and sustainable business area”.

It also presents an opportunity for the company to acquire a business with “the potential for growth and which will likely enhance shareholder value”.

AsiaPhos will purchase its interest in Helio Energy by acquiring holding company Global Resources SP (Taiwan) – which owns a 76.59 per cent in Helio Energy – from UK-based Global Resources England, which is fully owned by Solar Plus (HK).

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The US$3.5 million purchase consideration is subject to a final independent valuation report. It will be settled in cash upon completion of the acquisition – expected to take place before Jan 31, 2024.

The group said it intends to conduct fundraising for the transaction from either its existing shareholders, third party investors, or both.

It will also conduct an independent valuation of the 100 per cent equity interest it intends to acquire in Global Resources SP (Taiwan).

Shares of AsiaPhos : 5WV 0% were trading S$0.001 or 11.1 per cent higher at S$0.01 as at 9.49 am, after the announcement was made.