REG - Sabien Technology - Proposed Strategic Agreement with COF

Sabien TechnologyAnnouncement

19/11/2025 07:00

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RNS Number : 0668I  Sabien Technology Group PLC  19 November 2025

The information contained within this announcement was deemed by the Company
to constitute inside information as stipulated under the UK Market Abuse
Regulation.

 

19 November 2025

 

Sabien Technology Group Plc

("Sabien", the "Company" or the "Group")

 

Further update on Sabien, b.grn and related matters

and

Proposed Strategic Agreement with COF

 

Sabien (AIM: SNT), Sabien Technology Group plc (AIM: SNT), a provider of CO₂
and energy-reduction technologies with its core M2G intelligent boiler
optimisation solution, is pleased to provide a further update regarding its
strategic relationship with City Oil Field, Inc. ("COF") of the Republic of
Korea, and related corporate developments.

The Company reports that on 18 November 2025 COF's first commercial
Regenerated Green Oil ("RGO") production plant, located at the Wave Jeongeup
facility, in the Republic of Korea, was successfully commissioned. The RGO
production plant opening ceremony was attended by Richard Parris, Executive
Chairman of Sabien, and Charles Goodfellow, Non-Executive Director of Sabien,
who witnessed the commencement of full operational activity at the site. This
ceremony was also attended by Korean Government Agencies, commercial partners,
congressmen, international investors and members of the Press, and is reported
here
(https://www.koreatimes.co.kr/business/companies/20251118/city-oil-field-debuts-worlds-1st-low-temp-noncombustion-plastic-recycling-tech
(https://www.koreatimes.co.kr/business/companies/20251118/city-oil-field-debuts-worlds-1st-low-temp-noncombustion-plastic-recycling-tech)
).

 

Following this successful evidential visit, Sabien, b.grn Group Limited
("b.grn"), and COF have agreed to progress the previously announced memorandum
of understanding (the "MOU"), signed on 15 May 2023, into a proposed strategic
agreement (the "PSA"). All clauses in the MOU are preserved and, subject to
regulatory approvals, will be implemented through a series of separate
contracts to be agreed in the coming weeks.

 

Under the PSA, Sabien will acquire a minority equity interest in COF in return
for COF acquiring an interest in Sabien. In addition, and subject to contract,
Sabien's existing exclusive UK Sales Agency Agreement with COF will be
extended for a further ten years and expanded to include additional
international territories outside the Republic of Korea.

In a new development, the PSA also includes a shared intention to explore and
develop international trade opportunities for sustainable oil products
produced at the Wave Jeongeup plant for sale into the UK and EU.

Richard Parris, Executive Chairman of Sabien, said:

"The Proposed Strategic Agreement is expected to bind Sabien and COF in joint
enterprise to ensure mutual success. Having witnessed first-hand the quality
of engineering and operational performance at the Jeongeup RGO production
plant, the board of directors of Sabien (the "Board") is confident in COF's
technology and its global potential."

According to a report by the United Nations, more than 400 million tonnes of
plastic are produced globally each year, half of which is designed for single
use. Of this, less than 10% is currently recycled. Sabien, through its
Proposed Strategic Agreement with COF, is positioning itself to deliver
scalable, sustainable, and commercially viable solutions to this global
environmental challenge-for the benefit of both shareholders and the planet.

 

Terms of the Proposed Strategic Agreement

Sabien has conditionally agreed to acquire 687,275 shares in COF, representing
approximately 1.12 per cent. of the enlarged issued share capital of COF, for
a total consideration of £600,000 (the "Consideration"). The Consideration is
to be satisfied through the issue of 5,054,760 new ordinary shares of 3 pence
each in the share capital of Sabien ("Ordinary Shares") at a deemed issue
price of 11.87 pence per new Ordinary Share (the "Issue Price"). The Issue
Price reflects Sabien's five-day volume-weighted average closing share price
following the announcement of 2 October 2025.

The 5,054,760 new Ordinary Shares will be issued on a non-pre-emptive basis
pursuant to the authorities granted to the Board for the acquisition of shares
or securities at the Company's annual general meeting held on 29 March 2021.

Completion of the Proposed Strategic Agreement is conditional on, amongst
other matters, completion of certain mandatory registration requirements with
relevant Korean government agencies as well as the completion of the foreign
corporate investment into COF from Petroleum Environmental Development Company
("PEDCO") of Saudi Arabia at a COF valuation of US$72.2 million (the "Proposed
Foreign Corporate Investment") (together the "Conditions"). Further
information in relation to the Proposed Foreign Corporate Investment was
announced by the Company on 2 October 2025.

Completion of the Proposed Strategic Agreement is expected to occur within 10
days of completion of the Proposed Foreign Corporate Investment.
Notwithstanding this, the Company has no control over the timings of the
completion of the Proposed Foreign Corporate Investment, nor the receipt of
the mandatory registration requirements. Accordingly, there can be no
certainty that the Proposed Strategic Agreement will complete, nor the timings
of the completion of the Proposed Strategic Agreement.

COF reported audited total assets of KRW 11,364,689,362 for the year ended 31
December 2024 and an audited net profit before income tax expense of KRW
696,917,112 for the same period.

Change to significant shareholdings in the Company

Following the issue of the 5,054,760 new Ordinary Shares to COF, COF will be
interested in approximately 15.87 per cent. of the Company's enlarged issued
share capital.

The shareholding of Richard Parris and closely related parties will be diluted
on Admission to approximately 22.42 per cent. (the number of Ordinary Shares
that Richard Parris and closely related parties hold will remain the same at
7,140,175).

Admission to trading on AIM

Application will be made to London Stock Exchange for admission of the
5,054,760 new Ordinary Shares to trading on AIM ("Admission"), subject to,
amongst other things, completion of the Conditions. A further announcement
will be made once the Conditions have been satisfied and application for
Admission has been made.

Total voting rights

On Admission, the Company will have 31,848,245 Ordinary Shares in issue,
each with one voting right. There are no shares held in treasury. Therefore,
the Company's total number of Ordinary Shares in issue and voting rights will
be 31,848,245  and this figure may be used by Shareholders from Admission as
the denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

 For further information:

 Sabien Technology Group plc                       +44 20 7993 3700

 Richard Parris, Executive Chairman                investors@sabien.com (mailto:investors@sabien.com)

 Allenby Capital Limited (Nominated Adviser)

 John Depasquale / Nick Harriss / Vivek Bhardwaj   +44 203 328 5656

 AlbR Capital Limited (Broker)                     +44 207 469 0930

 Duncan Vasey / Lucy Williams

 

About Sabien Technology Group plc

Sabien Technology Group plc provides energy reduction solutions designed to
help businesses achieve their sustainability goals, with a particular focus on
reducing energy consumption and carbon emissions.

The Sabien Technology Group plc holds the Green Economy Mark from the London
Stock Exchange, recognising companies generating over 50% of their revenues
from sustainable products and services.

Website: www.sabien.com (http://www.sabien.com/)

 

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