“We have no involvement or links to state capture,” Renergen said yesterday in a statement on its website in response to questions from two of its shareholders as it was also forced to defend its rights to produce helium.
Renergen is facing a relentless social media onslaught by shareholder activist Albie Cilliers, leading to the gas and helium producer’s shares haemorrhaging 21% in seven days.
Its shares had fallen 7.26% by 4pm to R11.88, with a market cap of R1.89 billion.
The company did not mention which shareholders had raised questions.
According to its 2022 annual report, its main shareholders are Tamryn Investment Holdings (17.75%), Notable Pioneer (8.78%), MATC Investments (7.03%), CRT Investment (6.94%), while the Government Employees Pension Fund owns 5% of shares (via the Public Investment Corporation).
In a Business Report article last week, titled “Renergen’s share price falters on questions from shareholder activist”, Cilliers said that an aggressive stance by CEO Stefano Marani to a comment that Cilliers had posted on X the previous Friday had persuaded him to dig deeper into Renergen, even though he held no position in the company’s stock.
Since last week Cilliers has not stopped posting about Renergen on X.
His latest posts not only reference a Markus Jooste article amid numerous Renergen posts, but question Renergen’s ownership roots, real value and question whether the firm has the actual regulatory rights to sell helium.
Among other posts this week, Albie Cilliers R83-55 (@albie_cilliers) posted, “In a high court affidavit it is claimed that since helium is a noble, inert gas, which is not combustible, it’s therefore not petroleum, but a mineral. Renergen does not have a mineral production right, and therefore might not have a right to produce and sell helium.”
“Today I learned the reason why Ivanhoe walked away from Renergen,” Cilliers said in another post.
“Stefano Marani of Renergen LinkedIn profile states he was a partner at Kigeni until May 2020. So from the time they bought Tetra4 in 2014 for R5 mil, he had to benefit from the sale of 20% Renergen shares by Kigeni as bragged by Goldblatt 24.9 times money over 4 years,” a further post read.
Last week, Cilliers said public documents showed that Marani had bought the mining assets for less than A$1 million from a party that did not believe the assets were commercially viable, and then Marani on-sold the asset to a company he had formed for $650m.
Renergen’s response
Renergen’s principal asset is its 100% shareholding in Tetra4, which holds the first and only onshore petroleum production right issued by the Department of Mineral Resources and Energy in South Africa, giving it first mover advantage on distribution of domestic natural gas. Its Virginia Gas Project is located in the Free State, approximately 250km south-west of Johannesburg.
Renergen defended its helium rights and reputation, saying, “Tetra4 has a lawful and valid production right, which confers on it the right to extract and sell petroleum and helium.”
It went on to explain in depth that it held production rights, and said near the end, “This regulatory dispensation is recognised by the relevant competent authorities as a lawful right for the production and sale of natural gas (inclusive of the helium component) and the pipeline is supported by the SA Supreme Court of Appeal judgment, Trojan Exploration Co and Another v Rustenburg Platinum Mines and others, 1996.”
It categorically denied any state capture.
“Renergen and its directors have never been involved, implicated, or associated with state capture,” it said.
It gave more detail and said, “Post the listing of the special purpose acquisition company (Spac), Tetra4 was acquired with 100% shareholder approval of the circular detailing the entire transaction, its history and future prospects of the Virginia Gas Project: Stefano Marani (the current CEO) was formally recused of any negotiation or voting in relation to the transaction.”
Furthermore, it said Renergen had ceased to have any dealings with Integrated Capital Management and Clive Angel stepped down as its chief financial officer at the same time as the acquisition was completed.
A majority stake in Trillian was acquired by Regiments Capital several months after the initial public offering was concluded, it said.
Integrated Capital Management, Clive Angel and Trillian are all fingered in state capture allegations with the Guptas.
BUSINESS REPORT