The purchase of Renewable Energy Holdings' wave energy patent portfolio, CETO, by the Carnegie Corporation Limited, initially announced in May, has been given the green light following completion of due diligence and the appointment of an additional REH nominee director to the Board of Directors of CNM.

As a result of a restructure of pre-existing funding arrangements for the CETO technology development between REH and EDF EN, the purchase consideration payable by Carnegie to REH has been adjusted. This adjustment in funding arrangements results in REH now receiving 235 million shares upon completion of the transaction which will represent 32% of Carnegie’s post-transaction expanded issued capital (previously 252 million shares or 34%). Originally the deal was estimated to be worth in the region of £30 million.

The remaining outstanding conditions to the transaction are, says the company, anticipated to be completed well in advance of the shareholders meeting to approve the transaction currently scheduled for early September, 2009. Upon completion of the transaction, Carnegie will become the owner of the CETO intellectual property and retain the global rights to develop the technology. REH will become CNM’s largest shareholder with Carnegie Board representation. In the Northern Hemisphere, Carnegie will co-develop CETO projects with EDF EN, a 50% subsidiary of one the world’s largest power companies.

Carnegie expects meeting materials including an Independent Expert’s Report on the proposed transaction to be sent to its shareholders during the first week in August.