Intention to Make a Voluntary Takeover Bid
Today, a shareholder of Enefit Green AS, Eesti Energia AS, has formally announced its intention to initiate a voluntary takeover bid. This action is aimed at acquiring all shares of Enefit Green AS that have not yet been acquired by the Offeror. Below are the details surrounding this offer.
Details of the Takeover Bid
Eesti Energia AS, registered in Estonia, is reaching out to all shareholders of Enefit Green AS to present its proposal. The goal is to increase its ownership interest in Enefit Green to a minimum of 90%. Following this, the company plans to seek takeover of the remaining shares, pursuant to the applicable Estonian securities laws.
The Offeror has submitted a bid price of 3.40 euros for each Enefit Green share, a figure that reflects a premium over the average market price observed for the shares in recent months. This premium is aimed at incentivizing shareholders to accept the bid.
Understanding the Voluntary Bid
This bid is classified as voluntary, which means the Offeror is under no obligation to set the bidding price strictly based on predefined criteria. Importantly, shareholders are not mandated to participate; they have the freedom to decide whether or not to sell their shares during this period.
Eesti Energia is committed to ensuring that all shareholders are treated fairly throughout this process. The creation of a unified ownership structure is anticipated to benefit the company’s operational efficiency, leading to improved investment capacity in renewable energy sectors and enhanced earnings stability.
Benefits of the Takeover
The potential integration of operations aims to maximize the effectiveness of both sales and production portfolios within Eesti Energia. The management believes this consolidation could result in increased profitability, which may range from 40 to 60 million euros. By enabling better management of subsidiaries and simplifying legal frameworks, the Offeror hopes that this merger will bolster Eesti Energia's competitiveness significantly.
Future Plans and Investor Engagement
After the successful execution of the bid, Eesti Energia intends to present a bond offering to existing shareholders who sell their shares during this bid, providing a path for continued investment in the group. However, the initiation of this bond offer will depend on obtaining the necessary regulatory approvals.
The management asserts the importance of re-integrating Enefit Green to enhance the overall energy group’s competitiveness and sustainability. In a recent statement, Andrus Durejko, Chairman of the Management Board of Eesti Energia, reiterated the strategic advantages of this move.
Potential Timeline for the Takeover Bid
The Offeror has outlined several key dates anticipated for the process:
- Start of Bid period: 8 April 2025 at 10:00
- End of Bid period: 12 May 2025 at 16:00
- Disclosure of Bid results: 14 May 2025
- Settlement day of the Bid: 16 May 2025
Webinars for Investors
Eesti Energia is scheduled to host informative webinars for Enefit Green investors to further elaborate on the voluntary bid initiative. These presentations will offer insights and provide a platform for investors to ask questions regarding the takeover process.
Frequently Asked Questions
What is the purpose of the takeover bid?
The purpose of the takeover bid is to acquire all outstanding shares of Enefit Green AS currently not owned by Eesti Energia AS, with a vision to strengthen their energy operations and market position.
How much is Eesti Energia offering per share?
Eesti Energia is offering 3.40 euros per Enefit Green share, which incorporates a premium over the average market price from the last three months.
How will shareholders be impacted by the bid?
Shareholders will have the option to accept or decline the bid. It is designed to treat all shareholders equally while aiming for a streamlining of operations at Eesti Energia.
What are the projected benefits of combining operations?
The integration of operations is expected to yield significant profitability increases and operational efficiencies, which can enhance the energy security of the region.
When will the bid take place?
The bid is set to start on 8 April 2025 and conclude on 12 May 2025, with results announced shortly after.
