US financial investor KKR intends to take over Encavis
New York/ Hamburg — The American private equity investor KKR has made an offer of €2.8 billion ($3 billion) for the takeover of the German renewable energy manufacturer Encavis. Encavis, based on Grosse Elbstrasse in Hamburg, operates more than 300 wind and solar parks throughout Europe — most of them in Germany.
KKR subsidiary Blitz 21–823 (BidCo) has reached an agreement on a voluntary public takeover offer for all outstanding shares of Encavis at an offer price of EUR 17.50 per share.
The offer price is 33% above the volume-weighted 3‑month average price on March 5, 2024 and 54% above the closing price of the Encavis share of € 11.35 on the same day.
The American financial investor believes that it has already secured a major stake in Encavis, as major shareholders around the Hamburg billionaire Albert Büll want to sell their shares. Büll and his partner Cornelius Liedke are among the larger real estate investors in Hamburg, having built the Mundsburg Tower, the Mercado in Altona and the Neue Flora musical theater, among others. The motivation for the sale of its Encavis shares is unclear.
The Management Board and Supervisory Board of Encavis have unanimously voted in favor of the strategic partnership and plan to recommend that shareholders accept the offer.
KKR has submitted the offer in a consortium that also includes the Viessmann Group, a German manufacturer of heating and cooling systems, and the private equity investor Abacon Capital.
The takeover is subject to the achievement of a minimum acceptance threshold of 54.3 % of all outstanding Encavis shares and the fulfillment of standard offer conditions such as approval by supervisory authorities, antitrust authorities and foreign direct investors.
The transaction is expected to be completed in the fourth quarter of 2024.
Encavis is then delisted from the stock exchange and transferred to private ownership.