Renergen to dispute MGE's exercise of put option
JSE- and ASX-listed Renergen has informed shareholders that Mahlako Gas Energy (MGE) has given it notice that it elects to exercise a put option under a December 2023 agreement between MGE and Renergen's Tetra4 subsidiary.
Under the terms of the December 2023 agreement, MGE agreed to provide Renergen with a R550-million investment in return for a 5.5% interest in Tetra4.
At the time, Renergen also granted MGE's one owner Mahlako Energy Fund (MEF) an option to sell the shares in Tetra4 should certain events occur.
MGE has now informed Renergen that it intends to exercise that option, which would result in Renergen having to repurchase MGE's shareholding in Tetra4.
"Renergen categorically disputes that the put option has been lawfully or validly exercised and that it has consequently given rise to the aforementioned share transaction.
"Further to this, and resulting from the invalidity of the exercise of the put option, Renergen also disputes that the option transaction agreement has validly come into existence and will be challenging same," it notes in a statement to shareholders.
It adds that it is confident that MGE's "purported and premature exercise of rights, that have not arisen in the circumstances, and that may never come to fruition, is devoid of legal merit".
The December 2023 agreement includes comprehensive dispute resolution mechanisms to address such matters and Renergen expects the dispute to be resolved through those prescribed processes in due course.
Renergen stresses that its core business operations and strategic direction remain unaffected by this commercial dispute and that it continues to focus on the successful execution of its business plan and the development of the Tetra4 project, in South Africa.
Comments
Projects
Latest Multimedia
Latest News
Showroom
Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...
VISIT SHOWROOM
The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
