The market may be a sea of red on Tuesday, but that hasn't stopped one ASX All Ords share from shooting higher.
In afternoon trade, the PPK Group Limited (ASX: PPK) share price is up 20% to $1.12.
Why is this ASX All Ords share shooting higher?
Investors have been buying this ASX All Ords share in response to the release of a promising announcement.
According to the release, the technology investment company has entered into a series of conditional transactions to acquire a material interest in PowerPlus Energy.
PowerPlus Energy is Australia's largest privately owned lithium battery manufacturer. It specialises in supplying reliable, long-lasting modular battery storage solutions for on-grid and off-grid homes and businesses.
Management notes that the strategic acquisition complements its key business, commercial and operational strategies, and is synergistic with its other investments. This includes its investment in Li-S Energy Ltd (ASX: LIS).
If all conditions are met, PPK will initially pay $1.8 million to acquire a 33% interest in PowerPlus Energy under a share purchase agreement. It also has a clear fixed price pathway to increase its interest up to 75% within two years for an additional $2.8 million.
Management commentary
PPK's Chairman, Robin Levison, was pleased with the news. He commented:
PPK has been assessing a variety of opportunities in the energy market as we believe the world continues to shift towards renewable energy, and that energy storage will play a crucial role in ensuring a reliable and efficient energy system. We see the PowerPlus Energy acquisition as a key step in supporting this shift.
PowerPlus Energy's founder, Bradley Paton, echoed this. He added:
We are excited by the opportunity for PowerPlus Energy to join the PPK Group of companies, which will help drive growth pathways in our business. This growth will also provide upside opportunities to our Australian suppliers, both to grow their businesses and innovate with us.
