Hydrogen Capital Growth (HGEN) M&A Announcement summary

Deal rationale and strategic fit

• The combination creates a larger, specialist investment advisor platform focused on clean hydrogen and energy transition, leveraging Cordiant’s global reach and HydrogenOne’s sector expertise to accelerate market access and growth.

• Enhanced scale and capabilities are expected to position shareholders for greater opportunities and value in the energy transition space.

• Cordiant brings expertise in infrastructure, including energy transition, digital, and agriculture, supporting cross-sector opportunities.

• The partnership aims to place the combined entity at the forefront of hydrogen infrastructure development, aligning with climate imperatives and sector growth.

Financial terms and conditions

• Cordiant Capital UK will purchase the investment advisor to HydrogenOne; the transaction involves the sale of HydrogenOne Capital LLP's business and assets to H2 Holdco Limited, followed by Cordiant UK Limited acquiring H2 Holdco's equity share capital.

• Principals of the Investment Adviser will receive an equity stake in Cordiant Group Luxembourg as part of the deal.

• No buyout or special payment to the current investment manager; they will join Cordiant’s payroll.

• The investment trust will be renamed Cordiant HydrogenOne Plc upon completion, expected in early 2025.

Synergies and expected cost savings

• Access to Cordiant’s larger platform brings enhanced resources, compliance, governance, and back-office support, providing economies of scale and improved deal flow.

• Cross-fertilization with Cordiant’s agriculture and digital teams is expected to generate new project ideas and investment opportunities.

• Additional team members and resources will be added, providing more value without increased cost.

• Substantial energy transition opportunities are added to Cordiant's portfolio.