Shares in JSE-listed natural gas and helium producer Renergen rocketed on Tuesday after the group announced it had agreed to a buyout offer from ASP Isotopes (ASPI).
US-based ASPI, which produces isotopes for nuclear medicine, green energy and quantum computing markets, announced its firm intention to make a buyout offer earlier in the day.
The bid is subject to regulatory approvals and conditions that must be met by end-September.
The deal would see ASPI acquiring 100% of Renergen’s ordinary shares through a scheme of arrangement or standby general offer, the companies said.
Renergen CEO Stefano Marani was upbeat about the companies’ combined prospects after a “tumultuous” 18 months for the group, saying that the deal would help unlock much-needed capital for its flagship asset, the Virginia Gas Project.
“Access to a US investor base who have a deep understanding of critical minerals, as well as oil and gas, has for the longest time been the final critical ingredient required to unlock the Virginia Gas Project and the longer-term expansion of this unique natural resource,” Marani said.
The deal would also enable Renergen to expand its business horizontally across its key helium customer bases, including in the nuclear, healthcare, semiconductors and rocketry sectors.
“As the world becomes more insular, critical materials are quickly becoming the most sought-after commodities, and our merger places ASPI front and centre,” Marani said.
“Offering customers a fully integrated supply chain reduces a significant amount of risk for them, and makes our offering incredibly valuable.”
ASPI said the groups would benefit from a shared focus on critical and strategically important materials.
“Both isotopes and helium are viewed by many governments as critically and strategically important materials,” said ASPI CEO Paul Mann.
“The combination of these two companies will create a company with huge strategic value and a vital part of a fragile supply chain enabling so many industries,” he said.
Renergen shares were up 33.4% to R9.34 at 4pm.
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