KKR Extends Feelers Towards Encavis - Acquisition in Sight

In a significant strategic move, U.S. investment giant KKR aims to acquire Hamburg-based wind and solar park operator Encavis. A consortium led by KKR is ready to present Encavis shareholders with an attractive offer of 17.50 euros per share, which sparked enthusiasm among investors, evidenced by a sharp share price increase of over 26 percent. The traditional family-owned company Viessmann is also involved in the project as a co-investor. The plans for this acquisition are based on an agreement with key shareholders of Encavis, who hold nearly a third of the shares. The Encavis executive team has already signaled their approval and advocates for the bid, which values the company at more than 2.8 billion euros and includes a premium of 54 percent for the shareholders on the closing price before the initial takeover speculation. Boris Scukanec Hopinski of Viessmann reveals a deep insight into the ownership structure with his announcement that the family business is to acquire 25.1 percent of Encavis. Furthermore, it is envisaged that the asset management company Abacon will hold about 12.5 percent of Encavis in the future. The successful completion of the deal is contingent upon reaching a minimum acceptance threshold, which will also take convertible bonds into account. The entire transaction process is expected to continue until the last quarter of this year, aiming to delist Encavis from the stock exchange. Regarding the corporate future of Encavis, the company has announced that its portfolio of wind and solar parks is expected to expand in the coming years beyond previous expectations. While an operational profit decline is forecast for the current year, the management remains optimistic with a target revenue for 2024 of 460 million euros and an anticipated Ebitda of over 300 million euros.