Continuum Renewables has announced its intention to acquire solar developer Heliogen for US$0.40 per share of common stock in a non-binding proposal submitted to the board of directors of the company.
Heliogen is a renewable energy company that specialises in concentrated solar power systems.
The acquisition would allow Continuum Renewables to expand its renewable energy products and accelerate its growth strategy.
Continuum Renewables chief executive Paul Browning said: “We’re excited to announce our offer to acquire Heliogen.
“Heliogen has a strong reputation for developing innovative renewable energy solutions, and our proposal, if accepted, would offer the company’s shareholders a substantial premium to the current share price.
“This acquisition is an important step in our growth strategy, and we look forward to recapitalizing Heliogen as a private company and working with the Heliogen team to create value for our customers.”
The proposed, all cash price of $0.40 per share represents a premium of 60% over Heliogen’s closing stock price on the day prior to the announcement and a premium of approximately 70% over the company’s unaffected volume-weighted average price over the last month, Continuum said.
The transaction would be subject to diligence, customary closing conditions, including regulatory approvals, and negotiation of transaction documents.