Rex International Holding Proposes Strategic Share Acquisition in Renewable Ventures Nordic AB

Key Points from the Announcement

• Proposed Transaction Structure: Rex International Holding Limited (“Rex”) has announced a significant corporate action involving its subsidiary and Monarch Marine Holding Ltd (“Monarch”). Renewable Ventures Nordic AB (“RVN”) will acquire all 4,000,000 Xer Sweden Shares (representing 40% of Xer Sweden) held by Monarch. These are termed “Monarch Shares”.
• Terms of Consideration: Monarch will receive 13,636,364 newly issued RVN Shares as consideration for their stake, with the valuation based on the agreed RTO Price. Rex Technology Investments Pte. Ltd., a subsidiary of Rex, holds the remaining 60% of Xer Sweden Shares (6,000,000 shares), and the transaction’s terms for Monarch mirror those for Rex’s own shares.
• Proportional Risks and Rewards: The risks and potential rewards from this acquisition will be allocated according to the existing equity ownership in Xer Sweden, i.e., Rex and Monarch will each bear risks and receive rewards in proportion to their respective holdings (60% and 40%).
• Audit Committee’s Assessment: The audit committee of Rex has reviewed the deal and concluded that the transaction terms are fair and not prejudicial to the interests of Rex or its minority shareholders.
• Timeline: The announcement was made on 13 January 2026, marking the official communication of the proposed acquisition and spin-off process.

Investor Considerations & Potential Market Impact

• Shareholder Impact: Rex shareholders should note that this acquisition may alter the Group’s exposure to RVN and Xer Sweden, potentially affecting future earnings and strategic positioning in the renewable energy sector.
• Potential Price Sensitivity: The transaction involves a substantial issuance of new RVN shares to Monarch, which could affect the valuation and shareholding structure of RVN. The alignment of risks and rewards based on equity share means Rex retains its majority position, which could be viewed positively in terms of control and future upside.
• Minority Shareholder Protection: The audit committee’s explicit endorsement that the terms are not prejudicial to minority shareholders should provide some reassurance regarding corporate governance and fairness in the deal structure.
• Strategic Implications: The deal reflects Rex’s ongoing efforts to streamline its holdings and possibly unlock value in its renewable energy investments, a sector that continues to attract investor interest.
• Potential for Share Price Movement: Announcements involving share acquisitions, changes in ownership structure, and increased exposure to high-growth sectors like renewables often attract market attention and could impact Rex’s share price. Investors should monitor subsequent disclosures and market reaction closely.

Additional Details

• The new RVN shares to be issued to Monarch (13,636,364 shares) represent a material change in RVN’s capital structure.
• Both Rex and Monarch will have their risk/reward profiles in RVN calibrated exactly to their previous equity stakes in Xer Sweden, ensuring fairness and transparency in the transaction process.
• The deal is part of a larger spin-off process, with terms designed to avoid prejudice against Rex or its minority shareholders.
• The transaction is subject to completion as per the timeline and terms outlined; shareholders should await further updates.

Executive Summary

Rex International Holding Limited’s proposed acquisition of shares in Renewable Ventures Nordic AB by Monarch Marine Holding Ltd constitutes a significant corporate move. By maintaining proportionality in risk and reward, and ensuring minority shareholder protections, the transaction could reshape Rex’s exposure to the renewable sector and affect its future growth trajectory. Investors should note potential share price sensitivity in light of these structural changes and monitor subsequent communications for more details.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to conduct their own due diligence and consult with professional advisors before making any investment decisions. The information is based on the official announcement and may be subject to further updates or changes.

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