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Shares in ReNu Energy (ASX:RNE) soar following deal to buy Countrywide Renewable Hydrogen

ASX News, Energy
ASX:RNE      MCAP $4.15M
10 November 2021 12:05 (AEST)
ReNu Energy (ASX:RNE) - Chairman, Boyd White

Source: Boyd White / LinkedIn

Shares in ReNu Energy (RNE) spiked today after the company entered a share purchase agreement to acquire Countrywide Renewable Hydrogen (CRH).

CRH is an Australian company that begins green hydrogen projects with aim of developing them in collaboration with project partners and governments.

This acquisition will provide ReNu with access to the green hydrogen sector through three Australian onshore green hydrogen opportunities.

“Our goal is to progress the pipeline of green hydrogen opportunities that we have originated and are ready to take to the next stage,” said Geoffrey Ducker, Managing Director of CRH.

“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.”

ReNu will acquire 100 per cent of CRH through the issue of 134.6 million fully-paid ordinary shares priced at 6.8 cents each.

Subject to the satisfaction of various conditions, the acquisition is expected to be completed by December 2021.

These conditions include an agreement from CRH noteholders to sell their shares to ReNu and shareholder approval from ReNu.

Upon completion of the acquisition, ReNu will appoint two members to its board from CRH with the latter proposing to nominate Managing Director Geoffrey Ducker as an Executive Director and Non-Executive Chair Susan Oliver as Non-Executive Director.

ReNu Chairman Boyd White is excited to be acquiring CRH and its green energy projects.

“This agreement with Countrywide Renewable Hydrogen is the third investment in ReNu Energy’s renewable and clean energy incubator/accelerator strategy,” Mr White said.

“The transaction will provide the company with access to a compelling market opportunity in green hydrogen.”

Shares in ReNu were up 40.2 per cent to 11.5 cents each at 12:05 pm AEDT.

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