Orrön Energy has launched a public cash offer of SEK125 (€12.05) per share for Swedish wind owner and manager Slitevind.
Orrön, which changed its name from Lundin Energy earlier this summer, said the offer represents a 30% premium compared to the average price per share on the Nasdaq First North Growth Market during the 30 trading days up to and including 29 July this year.
It values the company at an estimated €85.7m.
It added that Slitevind’s board of directors has unanimously recommended shareholders to accept the offer.
Majority shareholders in the business, which collectively control 49.5% of the business, have “irrevocably undertaken to accept the offer”, which is valid until 23 August.
Acceptance by shareholders holding more than 90% of shares in Slitevind is required for completion.
Slitevind’s wind portfolio generates around 435GWh of power per year “across attractive Nordic price regions”, according to Orrön.
The prospective buyer said it is “impressed with the rate at which Slitevind has grown its business through brownfield acquisitions”.
“Orrön Energy believes that the acquisition of Slitevind provides greater scale and improved financial robustness for Orrön Energy, generating cash flow from a diversified asset base with an estimated combined net power generation of >1 TWh per annum by end 2023,” the offer note states.
It intends to fund its acquisition with existing cash reserves and has secured additional financing through a credit facility provided by Skandinaviska Enskilda Banken.
Daniel Fitzgerald, CEO of Orrön Energy (pictured), said: “I am confident that Orrön Energy and Slitevind together can build on our individual strengths to create a renewables company of scale that can prosper through the energy transition and create long-term shareholder value.”