Mustang Energy PLC and Cykel AI PLC on Friday agreed terms to an all-share takeover, following several extensions of the offer deadline.

Mustang Energy is a London-based special purpose acquisition company focused on energy storage assets.

In January, Mustang agreed to acquire the entire share capital of artificial intelligence specialist Cykel AI.

Mustang had until Friday to make a firm offer for the company, following a number of extensions to the takeover deadline.

The pair have now agreed terms to the deal, entitling Cykel shareholders to receive 1.91 new Mustang shares for each share held in the company.

The offer implies a value of 9.37 pence per Cykel share, a premium of 1.3% to its January 17 closing price of 9.25p, and values the company’s entire share capital at approximately £19.2 million.

Upon completion, Cykel shareholders will hold around 95% of the combined entity’s issued share capital, with Mustang shareholders holding the remainder.

‘The Cykel board and the Mustang board believe that there is a compelling strategic and financial rationale for the acquisition which will benefit the shareholders, clients, commercial counterparties and other stakeholders of the combined group,’ the joint announcement read.

Subject to court approval, as well as Mustang and Cykel shareholders voting in favour of the scheme, the acquisition is expected to close in the second quarter of 2024.

Shares in Mustang Energy and Cykel AI have been suspended since January 17, last quoted at 30.60 pence and 9.25 pence, respectively.

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