Reneuco Bhd has revealed their plans to acquire Adat Sanjung Sdn Bhd (ASSB) via its wholly-owned subsidiary Reneuco RE Sdn Bhd for RM90 million.
A result of a conditional share sale agreement (SSA) with OHP Ventures Sdn Bhd (OVSB), the acquisition will see RM20 million will be satisfied in cash payments with the remaining RM70 million acquired via the issuance of 318.18 million new shares in Reneuco at an issue price of 22 sen per share.
At the same time, OVSB will renounce up to 87.66 million in consideration shares to E&E Catalyst Sdn Bhd for the acquisition by ASSB of the 10 million redeemable cumulative convertible preference shares owned by E&E Catalyst in One River Power Sdn Bhd (ORP) under the proposed acquisition.
Adding to this, the company has also seen potential in the proposed acquisition to grow the group beyond the the medium- to long term.