Voluntary Takeover Bid for Enefit Green Shares Announced

Introduction to the Takeover Bid

Recently, a significant development has taken place regarding Enefit Green AS. Eesti Energia AS, a prominent shareholder, has announced a voluntary takeover bid aimed at acquiring all shares of Enefit Green not already owned by them. The proposed price stands at EUR 3.40 per share, marking a crucial step in their strategic plans for energy production.

Understanding the Bid

This takeover offer is conceived under the framework of the Estonian Securities Market Act and seeks to consolidate Eesti Energia's position in the renewable energy sector. By increasing their stake to at least 90%, the Offeror aims to further streamline operations and enhance their investment capacity for future projects, especially those focused on renewable energy generation.

Purpose of the Bid

The primary goal behind this takeover bid is to unify the sales and production portfolio of the Offeror, enabling the group to amplify its efforts in building renewable energy infrastructure. This is expected to lead to a more competitive pricing model for electricity while ensuring sustainable returns for the shareholders in the long run.

Operational Efficiency Gains

Successful acquisition will not only reduce administrative burdens but will also facilitate a simpler legal structure for Enefit Green. This streamlining is projected to enhance efficiency in management operations at the group level, which is pivotal for supporting Estonia's energy security ambitions.

Eesti Energia’s Future Plans

Post-takeover, the Offeror has plans to initiate a public bond offering in Estonia. This move is designed to provide existing shareholders of Enefit Green with an opportunity to reinvest in the larger Eesti Energia Group. The funds raised through this bond offering will be allocated for general corporate purposes, including potential debt refinancing and new capital projects.

Details of the Bond Offering

The bond offering is anticipated to take place in the first half of 2025, with plans for a range of 100,000 to 500,000 bonds, each issued at a nominal value of 100 euros. Proposed terms include a 5% coupon rate and a 3-year maturity, with intentions to list the bonds on the Baltic Bond List.

Investor Considerations

In pursuing the bond offering, Eesti Energia will prioritize Estonian retail investors and existing shareholders of Enefit Green. This not only demonstrates a commitment to local stakeholders but also provides an avenue for continued investment within the group.

Target Issuer and Shares Involved

The target of this takeover bid is Enefit Green AS, which currently has around 264 million ordinary shares listed under the ticker symbol EGR1T on the Baltic Main List. Each share gives its holder a voting right at the shareholders' meeting and entitles them to dividends and liquidation proceeds.

Current Shareholding Situation

Eesti Energia currently holds 77.17% of all Enefit Green shares, thus wielding substantial influence over the company. The objective of the current bid is to acquire approximately 60 million shares, representing about 22.83% of total shares available.

Timeline and Next Steps

The timeline for this bid is crucial. Offers from shareholders are being accepted until the deadline of 16:00 on May 12, 2025. The results of the bid will subsequently be announced in accordance with applicable regulations.

Regulatory Approvals

The necessary documents have been submitted to the Estonian Financial Supervision and Resolution Authority, which approved them, confirming that the takeover bid is compliant with Estonian laws.

Conclusion

This voluntary takeover bid is a strategic move for Eesti Energia AS as they aim to strengthen their foothold in the renewable energy market. With an offer price that reflects their commitment to their shareholders and growth ambitions, it presents an attractive opportunity for current Enefit Green shareholders. Anyone seeking further details can reach out via their investor contact numbers mentioned in official communications.

Frequently Asked Questions

What is the main purpose of the takeover bid by Eesti Energia?

The primary aim is to increase Eesti Energia's shareholding in Enefit Green to enhance operational efficiency and investment capacity in renewable energy projects.

What will happen to Enefit Green shares not acquired in the bid?

Once the bid is successfully completed, the Offeror plans to consolidate control and may terminate the listing of any remaining shares on the stock exchange.

How will the bond offering benefit Enefit Green's existing shareholders?

The bond offering will provide existing shareholders an opportunity to reinvest in the larger Eesti Energia Group, ensuring continued stakeholder engagement.

What is the deadline for participating in the bid?

Shareholders can submit their offers until 16:00 on May 12, 2025.

When is the bond offering expected to occur?

The bond offering is anticipated to take place in the first half of 2025 after the bid's settlement.

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