The German energy sector remains in the focus of international investors. The wind and solar park operator ENCAVIS has confirmed talks with the US financial investor KKR that could potentially lead to a takeover. The company announced this on Wednesday evening.
According to ENCAVIS, negotiations are still at a very early stage and there is no guarantee of an actual transaction. Nevertheless, KKR's interest in the German company demonstrates the attractiveness of the local energy market to foreign investors.
The Potential Deal is Worth Over Two Billion Euros, Reports Bloomberg News Agency. In Response, ENCAVIS Stock Soared by Over 18 Percent in Regular Trading. The Stock Price Also Remained at This Level After-Hours. However, Since Reaching its Peak in January 2021, the Stock Has Lost Over Half Its Value, Part of a General Decline in the Renewable Energy Sector.
One reason for the loss in this sector is the rise in interest rates, which makes investing in larger projects more difficult. In addition, inflation is causing higher costs. The falling energy prices have also impacted ENCAVIS's operational results, as confirmed by analysts at Berenberg. The company owns over 80 wind farms and more than 200 solar facilities across Europe.
The discussions with KKR indicate that the German energy sector remains an attractive industry for investors. ENCAVIS is a significant player in this field and could be strengthened by a takeover by an international financial investor. A potential deal could further solidify the company's position in the market.
