Takeover offer of 2,8 billion euros for German Encavis

A consortium led by KKR has submitted a public takeover offer (OPA) to the shareholders of Encavis, a Hamburg company listed on the Mdax, the mid-cap index of the Frankfurt Stock Exchange, Encavis said in a press release.

Encavis shareholders will be offered 17,50 euros per share, or 54% more than the value of the stock on March 5, it is specified. On this basis, the investment amounts to 2,8 billion euros, above the 2,2 billion of the company's stock market value.

Underlining the potential of Encavis, which presents itself as one of the main independent electricity producers in Europe, KKR says it wants to provide it with “the long-term financing necessary at a pivotal moment for the company”.

Encavis management, which supports the acquisition, says it wants to “move up a gear and compete with the main European players in the market”.

The consortium led by KKR also includes the German industrialist Viessmann, a family business which is reinvesting in this transaction the successful sale last year of the core of its activity, heat pumps, to an American competitor.

In reaction to this announcement, the Encavis share price rose 25% in the morning on Mdax.

Encavis currently has a production capacity of 3,6 GW of electricity in wind and photovoltaic farms spread across 12 European countries.

The consortium's ambition is to reach 7GW of installed capacity by 2027, higher than the current target of 5,8 GW, "with continued growth thereafter", the statement said.