Stock Markets January 22, 2026

VivoPower's Shares Drop Following AI Data Center Asset Acquisition Announcement

The renewable energy firm's plan to acquire Finnish data center infrastructure sparks investor caution amid extended timelines

By Ajmal Hussain VVPR
VivoPower's Shares Drop Following AI Data Center Asset Acquisition Announcement
VVPR

VivoPower International PLC announced plans to acquire OGDC Pte Ltd, a developer of AI data center infrastructure with strategic land holdings in Finland. The transaction includes a $13 million cash payment scheduled for February 2026 and contingent equity rights tied to successful grid connections for 291MW of land. Despite promising low-cost renewable energy access and leadership integration, the deal's distant closing and grid connection timelines have triggered a nearly 10% premarket stock decline.

Key Points

  • VivoPower agrees to acquire OGDC, gaining 291MW of powered land in Finland specialized for AI data center infrastructure.
  • Access to renewable hydropower below 4¢/kWh is expected to support cost-effective AI training and inference workloads.
  • The acquisition deal includes a complex payment structure with cash payment and contingent equity linked to grid connection milestones.

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.

Risks

  • The acquisition’s closing is scheduled for February 2026, introducing a long timeline that may delay expected benefits and impact investor sentiment.
  • Grid connections for the acquired land are projected to occur within 12 months post-closing, presenting execution risk related to infrastructure and regulatory approvals.
  • Market reaction suggests concerns around dilution and financing complexities despite mitigation strategies, reflecting uncertainty in capital markets and investor appetite.

More from Stock Markets

Revvity Tops Q4 Targets, Guides 2026 Revenue and Profit Above Street Views Feb 2, 2026 Stephens Picks Regional Banks and Specialty Lenders as Top Financials for 2026 Feb 2, 2026 U.S. Safety Regulator Broadens Probe of 1.27 Million Ford F-150s Over Transmission Malfunctions Feb 2, 2026 Disney parks and holiday films lift quarter above forecasts as sports business lags Feb 2, 2026 Tyson Foods posts stronger-than-expected quarterly profit as chicken demand offsets beef losses Feb 2, 2026