Join our daily newsletter At The Bell to receive exclusive market insights
- The Federal Court of Australia has approved the scheme for the merger of Real Energy (RLE) and Pure Hydrogen (PH2)
- The merger was first proposed in July 2020, but faced numerous delays throughout the process
- Real Energy shares will stop trading on the ASX on March 8 to re-emerge as Pure Hydrogen on March 9
- Real Energy is up 16.25 per cent and trading at 9.3 cents per share
- Pure Hydrogen is up 10 per cent and trading at 28 cents per share
The Federal Court of Australia has approved the scheme for the merger of Real Energy (RLE) and Pure Hydrogen (PH2).
In July 2020, Real Energy announced plans to merge with Strata-X Energy (SXA), with the intent of the merged entity existing under the name Pure Energy (PUC). Under the proposal, Strata-X Energy would execute the merger by acquiring all shares in Real Energy.
The company’s shareholders approved the merger with Strata-X on December 11, 2020. However, the proposed amalgamation faced numerous delays throughout the process over the last few months.
On December 17, the court hearing to finalise the merger was delayed due to some precedent conditions not being met. The Court Hearing was delayed again in February, due to the illness of the judge who was meant to preside over the proceedings.
In late February, Real Energy and Strata-X changed their mind about the name of the entity to eventually result from their merger. Instead of re-listing as Pure Energy (PUC), the combined companies would produce the entity Pure Hydrogen (PH2).
The name change was made in order to better reflect the companies’ active pursuit of building a large hydrogen business.
Earlier this week, Strata-X Energy changed its name and code to Pure Hydrogen (PH2), in preparation for the transaction. At the same time, the merger faced yet another delay when the Federal Court of Australia requested more information about it.
Today, the Court issued orders approving the scheme, finally allowing the long-awaited merger to proceed. As a result, Real Energy’s shares will stop trading on the ASX on March 8.
The new Pure Hydrogen shares will begin trading on the ASX (on a deferred basis) on March 9. The shares of the merger’s resulting entity will start trading normally on the ASX on March 18.
Moving forward, Pure Hydrogen will operate two distinct energy divisions – hydrogen and natural gas.
Real Energy is up 16.25 per cent, trading at 9.3 cents per share at 2:54 pm AEDT.
Pure Hydrogen is up ten per cent, trading at 28 cents per share at 3:01 pm AEDT.
