CLN Energy Limited has incorporated a step-down subsidiary, CLN Energy Solutions, in the Arab Republic of Egypt. The entity was established with an investment of USD 2 million to support lithium-ion battery assembly operations.

The incorporation, completed on September 22, 2026, aligns with the company’s objective to strengthen its presence in the energy solutions sector. The new entity will facilitate operational synergies and future business growth by supporting the manufacturing of lithium-ion batteries across Egypt.

Subsidiary structure and ownership

CLN Energy Solutions is promoted by C L N General Trading L.L.C., a wholly owned subsidiary of CLN Energy. Consequently, the new entity is classified as a related party of the listed company. The shareholding structure comprises 99% subscribed by C L N General Trading L.L.C Dubai (UAE) and 1% by Mr. Rajiv Seth.

The transaction involved cash consideration only. The total amount invested stands at USD 2 million, equivalent to 100 million Egyptian pounds. No governmental or regulatory approvals were required for this specific incorporation step, as noted in the disclosure.

Strategic rationale

The move is intended to support the company's main business objectives rather than diversify into unrelated lines of business. By establishing a local assembly unit, CLN Energy aims to enhance its supply chain capabilities in the region. The entity’s turnover history is not applicable as it is a newly formed company.

What the Numbers Show

The investment size of USD 2 million represents a focused capital allocation toward a specific operational node in Egypt. The ownership structure, with 99% held by the UAE-based wholly owned subsidiary, indicates a centralized control mechanism for international expansion. This structure allows the parent company to maintain tight oversight over the new manufacturing hub while leveraging regional trade agreements potentially available through the UAE entity.

Beacon Stone Capital VCC and its Persons Acting in Concert (PACs) reduced their stake in CLN Energy Ltd to 4.83% following an open market sale of 270,000 shares on September 16, 2026.

The acquirer group, which includes Astorne Capital VCC – Arven and Astorne Capital VCC - Alpha A2, disclosed the transaction under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing was submitted to the Bombay Stock Exchange and National Stock Exchange on September 17, 2026.

Transaction Details

The group’s holding stood at 779,400 shares, representing 7.39% of the total voting capital, prior to the disposal. The sale of 270,000 shares, equivalent to 2.56% of the equity share capital, brought the post-transaction holding down to 509,400 shares.

What the Numbers Show

The reduction in stake indicates a partial exit strategy by the investment vehicle, moving the group below the 5% threshold often associated with significant institutional block holdings. With the total diluted voting capital remaining unchanged at 10,553,250 shares, the entire change in percentage ownership is attributable solely to the open market divestment rather than any corporate action like rights issues or buybacks.

The acquirer confirmed that none of the shares held are encumbered by pledge or lien. The group is not part of the promoter or promoter group of CLN Energy Ltd.