Renergen gets investment boost from Italian firm SOL

Renergen says it will reap the benefit of technical partnerships as it rolls out the Virginia Gas Project. File photo

Renergen says it will reap the benefit of technical partnerships as it rolls out the Virginia Gas Project. File photo

Published Mar 22, 2024


Shares in Renergen closed 1.56% lower on the JSE at R10.72 on Wednesday despite it announcing an investment boost from Italian firm Airsol, a wholly-owned subsidiary of SOL.

The SOL group has a significant presence in the industrial gases market, including helium, across the world.

Renergen said conditions precedent to the subscription by Airsol of unsecured convertible debentures – which are convertible into Renergen shares upon the completion of an initial public offering by Renergen on the Nasdaq – had now been fulfilled.

SOL had now subscribed for the remaining tranche of convertible debentures, bringing SOL’s total investment in Renergen to a value of $7 million (R131m).

SOL had originally subscribed for convertible debentures in Renergen for an amount of $3m. The remaining tranche of convertible debentures in Renergen subscribed for by SOL for an amount of $4m was subject to Renergen and Tetra4 Proprietary implementing the recently-announced transaction, on December 27, with Mahlako Gas Energy.

“The transaction is strategic to both companies in that SOL is not only investing in Renergen, but also brings a wealth of knowledge and expertise to the company,” Renergen said.

Marco Annoni, the deputy chairman and managing director of SOL, said, “We are proud to define and strengthen our long-term global partnership with Renergen.

"This high-quality investment meets our investment criteria and will help our group secure future growth in the most ambitious helium worldwide market. This investment will enhance our network capacity to serve key industrial areas in the many countries we operate in.“

The SOL group was founded in Italy in 1927, and currently operates in 32 countries with more than 6000 employees.

Renergen said SOL also brought significant liquified natural gas experience to the table, complementing Renergen’s overall offering.

Renergen chief executive Stefano Marani said: “The two groups have been working closely on this transaction for some time now, and it is pleasing to see the results of the detailed technical due diligence culminate in what promises to be a mutually beneficial transaction for both parties, as SOL gains access to upstream helium, and Renergen the benefit of technical partnerships as we roll out the Virginia Gas Project.”