KKR launches €2.8bn takeover bid for Encavis

American private equity investor KKR has put forward a €2.8bn ($3bn) offer to acquire German renewable energy producer Encavis.  

KKR’s subsidiary Blitz 21-823 (BidCo) has made an investment agreement to initiate a voluntary public takeover offer for all outstanding free-floating shares of Encavis at an offer price of €17.50 per share.

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The offer price is 33% more than the 3-month volume-weighted average share price as of 5 March 2024, and 54% more than Encavis’ closing share price of €11.35 on the same date.

Encavis’ management board and supervisory board have extended unanimous support for the strategic partnership and plan to recommend that shareholders accept the offer.

KKR presented the offer in a consortium that includes the Viessmann Group, a German manufacturer of heating and refrigeration systems, and Abacon Capital, a private equity investor.

The takeover is contingent on reaching a minimum acceptance threshold of 54.3% of all outstanding Encavis shares, alongside standard offer conditions such as regulatory, antitrust and foreign direct investment approvals.

The transaction will close in the fourth quarter of 2024.

Encavis will then be delisted from the stock exchange and transitioned to private ownership.

Source: MSN

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