Browning's BidEnergy seeks listing

A technology company led by former Alinta Energy boss Bob Browning is seeking an ASX listing through a reverse takeover of Perth-based Cove Resources.

BidEnergy owns a platform that manages a customer’s energy spending, from sourcing and category management through to finance and accounts payable.

It operates out of offices in Melbourne, Sydney and London, and is chaired by Mr Browining, who served as Alinta’s chief executive for six years until 2007.

Mr Browning later worked as boss of shipbuilder Austal until 2010, and subsequently was involved with ASX-listed prepaid payment solutions business Emerchants.

Under the terms of the deal, Cove will wholly acquire BidEnergy in exchange for about 201.4 million shares worth about $2.4 million, based on Cove’s closing share price on Monday before it entered a trading halt.

Cove will also issue BidEnergy up to 70 million performance shares, subject to the achievement of certain revenue milestones.

Cove will also be required to complete a minimum $7 million capital raising in order to comply with ASX re-listing rules, with the value of the shares yet to be disclosed.

Cygnet Capital and Canaccord Genuity will joint lead manage the raising.

If the deal is successful, existing Cove chairman Winton Willesee and directors Marcus Gracey and Erlyn Dale will step down from their roles to be replaced by nominees from BidEnergy, including Mr Browning, who will assume the role of chairman, Stuart Allinson, Anthony Du Preez and Zac Rosenberg.

Mr Willesee said the board was delighted to have executed a term sheet for the acquisition of BidEnergy.

“Completion of the acquisition will provide shareholders with early exposure to a disruptive and rapidly expanding global technology company,” he said.

“With established revenue and over 4,500 sites under management, BidEnergy has proven that its proprietary platform can solve inherent process issues and deliver significant savings throughout the energy procurement lifecycle.”

Cove shares closed 8.3 per cent higher to 1.3 cent each.