ReNu Energy Limited (ASX:RNE) Announces Sale of Countrywide Hydrogen Business
Sale Details
ReNu Energy Limited (ASX:RNE) has agreed to sell its Countrywide Hydrogen Business, including the Tasmanian green hydrogen project, to Countrywide Hydrogen Holdings Pty Ltd. The transaction is valued at up to $1.1 million and includes cash payments, assumption of liabilities, and a royalty based on project revenue. The sale is subject to shareholder approval at an extraordinary general meeting in March 2025, with completion also targeted for March 2025.
Rationale
The sale follows market feedback, ReNu Energy’s financial position, and the need for additional capital to advance the hydrogen project. The Independent Board Committee determined that the proposed divestment is in the best interest of shareholders, aiming to achieve cost savings and strengthen the company’s balance sheet.
Future Outlook
Following the divestment, ReNu Energy will reposition itself as a clean listed vehicle, focusing on identifying opportunities to create shareholder value through acquisitions, equity investments, or strategic combinations. The company is also consulting with ASX to ensure compliance with listing rules following the significant change in its business activities.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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