Australia: CWE Welcomes New Major Shareholder
Wave energy developer Carnegie Wave Energy Limited (CWE) advises that major shareholder Renewable Energy Holdings Plc (REH) has sold 53% of its shareholding via off market transfer to a small consortium of Australian investors led by 88 Green Ventures (Australia).
In addition to the sale of half its shareholding, REH has also agreed to distribute its remaining Carnegie shareholding to all REH shareholders via an in specie distribution expected before the end of 2012. REH’s remaining CWE shares will be held in escrow until the in specie distribution occurs.
The transaction follows on from REH’s announcement on April 30 this year of their intent to dispose of all of REH’s global assets including their shareholding in Carnegie. Carnegie can confirm that REH has been selling their shares on the ASX market from January 12 to June 29 this year in order to fund their working capital requirements.
Carnegie’s Managing Director and Chief Executive Officer commented: “We are pleased that this transaction has taken place. It allows REH to fund its working capital requirements and allows REH’s shareholders to have direct ownership in Carnegie upon completion of the in specie distribution. For Carnegie, it removes a large active seller from the marketplace and with it, the associated downward share price pressure. Furthermore, it replaces REH with a small consortium of supportive investors with a long term focus, led by an existing shareholder with an outstanding track record in power and infrastructure investment.”
The breakdown of the transaction is as follows:
– Prior to the transaction REH owned 215 million shares (21%) in Carnegie.
– 114 million shares have been sold via an off market transfer to 88 Green Ventures, a Perth based family office and 2 wholesale investors.
– The remaining 101 million REH shares are the subject of a voluntary escrow until they can be distributed back to REH’s existing shareholder base.
-At the time of the transaction REH’s existing shareholder base consists of Utilico Ltd (29%), Weiss Asset Management (20%), Henderson Global Investors (16%), UBS AG (6%), EDF Energies Nouvelles SA (4%) and approximately 700 retail shareholders. With Carnegie’s current share capital structure, this shareholder base will represent approximately 8% of Carnegie ownership upon distribution.
All documentation relating to the share transfer has been completed and shares are expected to be processed today.
Offshore WIND staff, July 13, 2012; Image: CWE