Awaiting approval by regulatory authorities in Jamaica and Dominican Republic

Durrant Pate/Contributor

Jamaican battery company, Tropical Battery has signed a deal acquiring a 50 per cent stake in Dominican Republic-based KAYA Energy Group, based in the capital, Santo Domingo.

KAYA Energy is in the business of solar photovoltaic engineering, procurement and construction. The acquisition by Tropical Battery, which is listed on the junior stock market in Jamaica, involves a combination of cash and shares.

The transaction is pending financial close and approval by the regulatory authorities in Jamaica and the Dominican Republic. The acquisition of KAYA advances Tropical Battery’s strategy of diversifying its product and service offering and extending its geographical footprint across the Caribbean Basin.

The deal expands the addressable market for solar power and energy storage equipment distributed under Tropical Battery’s Tropical Renewable Energy division fourfold. It will also enable a vertical integration of Tropical Energy’s business with KAYA’s design, engineering, installation and maintenance expertise.

No planned management

The parties report that there will be no change in KAYA Energy’s management arising from the acquisition, as the current team will remain at the helm for the foreseeable future, as it is integrated with Tropical Renewable Energy. The deal is expected to be accretive to Tropical Battery earnings in FY2023.

In her response, KAYA Co-founder and CEO, Karina Chez said: “We are very excited to be integrating our operations with Tropical Energy. This transaction validates all the hard work we have put into building KAYA Energy Group and marks a new chapter in our growth and development. We are proud of what we have achieved and look forward to building an even greater, more regional platform in the years ahead as part of the Tropical Battery group of companies.”

Chez added that “affordable energy independence is within reach for households and businesses across the Caribbean, and with Tropical Energy by our side, it’s more accessible than ever”.

For his part, Tropical Battery Managing Director Alexander Melville stated: “We are pleased to be entering the largest renewable energy market in the Spanish-speaking Caribbean in partnership with KAYA Energy Group. The Dominican Republic has a population of more than 11 million and GDP of nearly US$100 billion, over six times the size of the Jamaican economy with considerable momentum driving the adoption of renewables.”

He noted that KAYA Energy Group has built an impeccable reputation over the past decade, while spearheading the push for an enabling regulatory regime in the country, and “we have a lot of synergies that will propel our combined growth for years to come”.

He said: “KAYA Energy Group’s founders share our core values, our regional vision, and our mission to facilitate the transition to a more sustainable, low-carbon economy in the Caribbean by providing world class renewable energy solutions.”