Nel has taken a 4.85% stake in its spin-off hydrogen refuelling business Cavendish Hydrogen to secure its long-term success.
In an online statement, the Norwegian electrolyser firm said the stake in the newly separated company will “strategically support it [Cavendish Hydrogen] for its long-term success.”
Read more: Nel and Cavendish Hydrogen established as separate companies
The statement added, “Reference is made to the filing made today by Cavendish Hydrogen calling for an Extraordinary General Meeting (EGM) to replace the current Board of Directors.
“When Nel spun out and separately listed its fuelling business, the entity was set up to maximise its long-term potential. To be able to succeed, a highly competent and dedicated Board of Directors is needed.”
Last Thursday (January 16), Lavrans Grjotheim, Chair of the Board of Directors at Cavendish Hydrogen, sold his 950,565 shares in the company at a price of NOK 11 per share through his companies Axon and Galileo.
Since it was established last June, Cavendish’s stock exchange results fell from NOK 38.50 ($3.37) to NOK 7.10 ($0.62) on January 17, 2025. This represented an 82% decrease from its peak last summer.
Commenting on the 5% stake, Kjell Christian Bjørnsen, Chief Financial Officer (CFO) of Nel, said, “We have a long history together and it is strategically important for Nel to maintain a good and collaborative relationship with Cavendish and some of its customers.
“As such, we intend to vote in favour of the nomination committee’s proposals”
The EGM will be held on February 7, 2025, at 10:00 CET.
Just last week, Nel announced it would cut jobs and temporarily halt production of its alkaline hydrogen production technology due to slow uptake.
Read more:Nel pauses alkaline electrolyser production in Herøya, announces layoffs
Nel revealed that order intake in 2023 and 2024 “fell short of expectation” with several customer projects delayed or “at risk of being cancelled.” Its Q3 2024 results saw a 52% decrease in order intake from the year prior.
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