HYON signs Share Purchase Agreement with Blue Concept Ltd.
Hyon AS (“HYON“) has signed a Share Purchase Agreement (“SPA“) with Blue Concept Ltd. (“Blue Concept“) for the acquisition of 19.5% of the shares in Rapid Oil Production Ltd., (“Rapid“) a UK-based oil & gas company.
- The agreement closes the strategic review process initiated by the board of directors of HYON within Q1 2024 as previously communicated as the targeted completion.
- HYON is given a basis for continued operations, where it is intended that additional shareholders in Rapid is also given the opportunity to sell their shares against receiving HYON shares to establish Rapid as a subsidiary of HYON.
- Blue Concept will become the largest owner of HYON and intends to secure funding to support continued operations following completion of the SPA, which may consist of loans, equity or any combination thereof.
- The SPA will be dealt with at an extraordinary general meeting to be held on or about 16 April 2024.
Pursuant to the SPA, Blue Concept will sell its 19.5% shareholding in Rapid against a 73.8% ownership in HYON in an all-share transaction. HYON will issue consideration shares that will be new shares issued pursuant to a general meeting’s resolution. The transaction, together with the contemplated potential additional acquisition of shares in Rapid from other shareholders whereby Rapid may become a subsidiary of HYON, redirects and restructures HYON towards an enlisted oil company with combined HYON and Rapid shareholder base.
Otto Søberg, Chairman of HYON, said:
We are pleased to provide this opportunity to our shareholders to leverage on our infrastructure as a listed company.
“Since the announcement of the discontinuation of our hydrogen initiatives, Hyon has taken all necessary measures to reduce the activity and cost base in the company, and have now concluded on a transaction the board of directors in Hyon believe is the most valuable solution for our shareholders given the alternatives available. HYON has made a significant effort to develop advanced technical solutions for bunkering of ships with hydrogen. The market has turned out to be immature and is unfortunately delayed with several years in the whole hydrogen value chain. Norwegian Hydrogen has over the years invested resources and competences in the development of Hyon. The Board is very motivated that Norwegian Hydrogen AS will take over ownership and further development of the HYON proprietary technology for inclusion into their hydrogen projects. In addition, we propose to the shareholders to enter into the Rapid agreement to maximize the value of the company in line with the initiatives announced during the autumn of 2023,”
Geir Aune, Chairman of Rapid and Blue Concept, said:
We have successfully established a business based on oil & gas assets in Rapid. The oil industry is in many geographical areas fragmented with a high number of smaller companies.
“We strongly believe in the role of being a catalyst for consolidation of smaller oil companies and production interests in order to attract financing, diversify risk and get economy of scale,”
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HYON signs Share Purchase Agreement with Blue Concept Ltd. source
