12th Oct 2009 07:00
12 October 2009
Renewable Energy Holdings plc
("REH" or "the Company")
CETO: Completion of disposal
Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operator of proven and innovative renewable energy technologies, notes the recent announcement by Carnegie Corporation Limited ("Carnegie") in relation to completion of documentation in relation to the acquisition of REH's CETO Wave Technology ("the Transaction") which was referred to in REH's previous announcement on 4 September 2009.
Carnegie previously announced that its shareholders had approved the allotment and issue of 235,000,000 fully paid new ordinary shares of Carnegie to REH as consideration for the Transaction (the "Consideration Shares"). REH has now become Carnegie's largest shareholder with an interest of approximately 33% of Carnegie's current issued share capital and under the rules of the ASX, REH is required to hold the Consideration Shares for 12 months following issuance.
In accordance with the agreement, REH plc is no longer responsible for the CETO development costs, which now become the obligation of Carnegie Corporation.
REH's Chief Executive Officer, Mike Proffitt, said "We are delighted to become Carnegie's largest shareholder and to have crystallised significant value for REH shareholders, which, based on current market price, values the REH holding at just over £30 million. Upon CETO reaching commercialisation, this transaction will allow REH shareholders the additional value of continuing to participate in the future revenues generated by its world-wide roll-out."
In the initial announcement made on 11 May 2009 it was stated that completion of the Transaction would represent a related party transaction for REH pursuant to Rule 13 of the AIM Rules for Companies due to Mike Proffitt and Alan Burns being directors of both REH and Carnegie. The independent directors of REH consider, having consulted with REH's nominated adviser Ambrian Partners Limited, that the terms of the Transaction are fair and reasonable insofar as its shareholders are concerned.
For further information, please contact:
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Renewable Energy Holdings plc |
Tel: 01624 641199 |
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Mike Proffitt, Chief Executive |
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Ambrian Partners - Nominated Adviser & broker |
Tel: 020 7634 4705 |
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Richard Swindells / Andrew Craig |
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Financial Dynamics |
Tel: 020 7831 3113 |
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Jonathon Brill/Billy Clegg/Edward Westropp/Alex Beagley |
Related Shares:
REH.L