RGY Reenergy

    RNS Number : 0499Z
  ReEnergy Group PLC
  15 July 2008
   



    ReEnergy Group plc
    ("ReEnergy" or the "Company")

    Notification of Investing Strategy
    and notice of Extraordinary General Meeting

    Following the announcement on 17 June 2008 regarding the disposal of the Company's only trading subsidiary Estech Europe Limited
("Estech"), ReEnergy confirms that a notice of extraordinary general meeting ("EGM") including an explanatory letter from the Non-Executive
Chairman of ReEnergy, has been dispatched to its shareholders convening an EGM to be held at the offices of Strand Partners Limited, 26
Mount Row, London W1K 3SQ at 11.00a.m. on 30 July 2008.

    The EGM notice includes an ordinary resolution to approve the Company's proposed investing strategy ("Investing Strategy") in accordance
with Rule 15 of the AIM Rules. If the Investing Strategy is not approved at the EGM, the Board will proceed with a voluntary liquidation of
the Company.

    The full text of the letter from the Chairman is set out below:

    "Dear Shareholder

    Background
    The Company announced on 17 June 2008 that it had completed the disposal ("Disposal") of its wholly-owned subsidiary, Estech Europe
Limited ("Estech"). Prior to the Disposal, Estech was the Group's only trading subsidiary.

    Under the AIM Rules for Companies published by the London Stock Exchange plc (the "AIM Rules") where a company whose shares are traded
on AIM divests itself of all or substantially all of its trading business activities it will be treated as an "investing company".  Such a
company must then state its investing strategy going forward and implement its investing strategy, to the satisfaction of the London Stock
Exchange plc (the "London Stock Exchange"), within twelve months of shareholders approving the investing strategy.

    Accordingly, I am now writing to you to outline the Board's proposed investing strategy and to seek your approval of it. In this regard
you will find attached to this letter a notice convening an extraordinary general meeting of the Company (the "EGM") at which an ordinary
resolution to approve the investing strategy will be proposed (the "Resolution").

    Investing Strategy
    After careful consideration the Board has determined that the Company's investing strategy will be to acquire a UK-based trading company
involved primarily in renewable energy, waste management or financial services and which is capable of significant organic growth (the
"Investing Strategy").

    Acquisition targets will be subject to initial commercial due diligence by the remaining Directors -Tony Morgan, Jonathan Allen and I -
each of whom have significant experience in waste management and renewable energy businesses and, in the case of Tony Morgan, in financial
service businesses.

    In reviewing investment opportunities, relevant commercial advice will be taken from market consultants as deemed appropriate. Further
relevant legal and financial due diligence will be undertaken by suitably qualified advisers to determine the feasibility and risks
associated with any potential acquisition or investment.

    It is intended that any such acquisition will be completed within 12 months of the date of the EGM. If no such acquisition is completed
within this timescale, the London Stock Exchange will suspend the Company's quotation on AIM.

    If the Investing Strategy is not approved at the EGM, the Board will proceed with a voluntary liquidation of the Company.

    Cash estimate
    Following completion of the Disposal, and assuming (i) the return in full of the proportion of the consideration held in escrow pending
warranty claims by the acquirer of Estech; and (ii) settlement of professional fees and costs relating to the Disposal and cessation of
trading activities, ReEnergy will hold a cash balance of approximately �550,000, or approximately 0.5 pence per Ordinary Share.

    Suspension
    Trading in the Ordinary Shares is currently suspended, pending the publication of the Company's report and accounts for the year ended
31 December 2007, preparation of which was delayed pending completion of the Disposal. The Company expects to publish such report and
accounts within 8 weeks of commencing the audit in respect of such period, at which time it is expected that trading in the Ordinary Shares
will recommence subject to the issue and announcement by 30 September 2008 of the Company's interim results for the six months ended 30 June
2008.

    Shareholders should be aware that, in the event the Investing Strategy is not approved at the EGM, the Board may not prepare audited
accounts in respect of the period to 31 December 2007 to reduce costs ahead of a voluntary liquidation of the Company.

    Board changes
    Following completion of the EGM, Andrew Biffen, Wayne Keast and Steve Mueller will resign from the Board. Jonathan Allen, Tony Morgan
and I will remain as non-executive directors to evaluate potential reverse acquisition targets.

    Action to be taken
    You will find enclosed a form of proxy for use in connection with the EGM. You are urged to complete the form of proxy in accordance
with the instructions printed thereon and return it to Capita Registrars, Proxy Department, PO Box 25, Beckenham, Kent, BR3 4TU as soon as
possible and, in any event, so as to be received by no later than 11.00pm on 28 July 2008. The completion and return of a form of proxy will
not preclude you from attending the EGM and voting in person should you wish to do so.

    Recommendation
    Your Board considers that adopting the Investing Strategy to be in the best interests of the Company and its Shareholders as a whole.
Accordingly, your Board recommends that Shareholders vote in favour of the resolution to approve the Investing Strategy to be proposed at
the EGM."

    Further enquiries:

 Roger Hewitt, Non-Executive Chairman  020 7432 0340 
 ReEnergy Group plc

 Simon Raggett, Chief Executive         020 7409 3494
 Strand Partners Limited

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