VivoPower is refocusing entirely on AI data center infrastructure and will separate its non-core businesses Tembo and Ca

VivoPower PLC announced on July 2, 2026 that following a strategic review, the company will prioritize the development and scale-up of its AI data center business as its principal strategic focus. The Board of Directors has determined that VivoPower's subsidiary businesses, Tembo e-LV B.V. and Caret Digital, will be separated from the group in a manner consistent with this priority.

The separation of Tembo will proceed through its previously announced Business Combination Agreement with Cactus Acquisition Corp. 1 Limited, which remains under review with the Securities and Exchange Commission. Upon completion, the combined entity will be named Tembo Group N.V. and will be listed on the Nasdaq Stock Market under the ticker TEMB, with VivoPower retaining a minority shareholding subject to regulatory approvals. The company has discontinued all previous special dividend and distribution arrangements referenced in its June 9, 2025 announcement, including all indicative ex-dividend dates, record dates, distribution ratios, and timing parameters, which are no longer operative.

Regarding Caret Digital, VivoPower's legacy US-based solar development and digital asset mining operations, the company has abandoned its previous plan for a partial spin-off with special dividend. Instead, the entire issued share capital of Caret Digital will be distributed in specie to VivoPower shareholders on a pro rata basis, providing shareholders with their full economic interest in the business. This Proposed Separation is subject to final Board approval, necessary regulatory and stock exchange approvals, shareholder approval if required, definitive documentation, market conditions, and customary closing conditions. The company cautioned that no assurance can be given regarding the final structure, form, timing or other terms of the Proposed Separation.