SYDNEY, AUSTRALIA: ReNu Energy Limited has entered into a Share Purchase Agreement to acquire 100% of the issued capital of Australian green hydrogen business, Countrywide Renewable Hydrogen Limited (CRH).
ReNu Energy will acquire CRH through the issue of 134,659,520 fully paid ordinary shares at $0.0688 per share. Pricing represents ReNu Energy’s 10-day volume weighted average price (VWAP) prior to entering into the Share Purchase Agreement.
The acquisition of CRH is targeted to complete in December 2021 subject to satisfaction of various completion conditions precedent, including approval by ReNu Energy shareholders.
CRH originates green hydrogen projects with a view to developing them in collaboration with project partners and governments, initially targeting domestic requirements and where viable, expanding the projects to meet future export demand.
CRH’s business model is to retain equity in each project as it moves through development, into production and revenue generation.
ReNu Energy Chairman Boyd White said: “This agreement with Countrywide Renewable Hydrogen is the third investment in ReNu Energy’s renewable and clean energy incubator/accelerator strategy.
The transaction will provide the Company with access to a compelling market opportunity in green hydrogen. CRH has a strong leadership team and we will be excited to welcome both Geoff and Susan to the ReNu Energy Board of Directors.
ReNu Energy will also gain considerable expertise of other key CRH personnel, and we look forward to working together to progress the opportunities and create value for our collective shareholder base.”
Nu Energy CEO Greg Watson said: “We are particularly attracted to the company’s origination expertise, existing portfolio of opportunities, as well as CRH’s overseas pipeline of opportunities. The acquisition is 100% scrip, conserving ReNu Energy’s cash. CRH will be debt free at completion and comes with positive working capital to progress the opportunities in the short term.”
Countrywide Renewable Hydrogen Managing Director, Geoffrey Drucker said: “Our goal is to progress the pipeline of green hydrogen opportunities that we have originated and are ready to take to the next stage.
The opportunity afforded by this transaction with ReNu Energy not only accelerates delivery of that outcome, but also gives us access to a quality team that will add value to our strategic planning and project delivery to the ultimate benefit of shareholders in both companies.”