KKR entices with billions: Encavis on the verge of takeover by US investors

The stage is being reset in the energy market: The wind and solar park operator Encavis is on the verge of being acquired by US investor KKR, along with additional partners such as the traditional German company Viessmann. The takeover offer for the Hamburg-based energy producer stands at an impressive 17.50 euros per share, resulting in a total valuation of approximately 2.8 billion euros – a premium of 54 percent compared to closing market prices prior to the initial takeover rumors. As a result, Encavis' stock has experienced significant tailwind, appreciating in value and nearly reaching the proposed price. With anchoring investors holding nearly a third of the company, KKR has secured stable support for the deal, facilitated by the endorsement of Encavis' leadership. The move by Viessmann – recently soaring financially after the sale of its climate division – could mean much more than a capitalist investment, as statements from operational management reveal. In addition to the anticipated cross-holding by the asset management firm Abacon, which will stabilize its share at 12.5 percent, the leadership and investors hint that Encavis is to gain extensive operational possibilities in the forthcoming market changes. Analyst Martin Comtesse from JPMorgan draws an interesting parallel, interpreting KKR's recent activities in the European energy sector as a signal for an intensified commitment. Within a few months, the investor was already involved with companies such as Smart Metering Systems and Greenvolt. For Encavis' executive levels, the combination of private equity capital and the rapidly developing energy business appears to be an imperative to keep the company on track. At the same time, it is intended that Encavis' existing values and identity be preserved, a promise likely to reassure the workforce. The vision for the future is already on the table: The company shares a heightened expansion plan for its wind and solar parks. With a targeted generation capacity of 7 gigawatts by 2027, Encavis demonstrates bold ambition for expansion. Operational challenges for the current year are being openly addressed, with revenue growth already factored for the following year. Encavis' financial figures indicate a solid foundation for the ambitious future plans: An operational revenue almost matching the previous year's results, despite a slight decline in operational profit, speaks to the market positioning of the MDax-listed corporation.