ASP Isotopes set to acquire Renergen in key merger for strategic materials

Renergen's share price rockets 44.7% following announcement of surprising deal

- EDWARD WEST

RENERGEN'S share price rocketed 44.7% on Tuesday following the announcement of one of the most surprising deals on the JSE this year, the buyout offer for South Africa's only onshore gas production company by Nasdaq-listed ASP Isotopes, to create a merged company focused on globally sought-after critical materials.

ASP Isotopes, which only last month indicated it wished to do a secondary listing on the JSE later this year, has made a firm share-for-share offer to acquire 100% of the shares in Renergen, by way of a scheme of arrangement or standby general offer.

Renergen's shares traded at R10.13 on the JSE Tuesday, up 44.7%. In the US, ASPI's share price fell 10.7% to $6.71. Renergen's market capitalisation was R1.09 billion on the day.

"This is an exciting step for ASP Isotopes. With the imminent spin-out of QLE, I have been considering the expansion of the ASP Isotopes business, and this opportunity is the perfect fit for us," said ASP Isotopes chairman and CEO, and QLE (Quantum Leap Energy) chairman and CEO Paul Mann in a statement.

He said both isotopes and helium were viewed by many governments as critically and strategically important materials.