Germany

Germany

Morgan Stanley ups PNE takeover offer

Morgan Stanley Infrastructure Partners (MSIP) will launch a takeover bid for German wind developer PNE with an increased offer of €4 per share.

Morgan Stanley and PNE first confirmed discussions of a possible takeover at the end of August
Morgan Stanley and PNE first confirmed discussions of a possible takeover at the end of August

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The offer of €4 per share marks a 31% increase over the last closing share price (€3.05) before PNE confirmed talks with the banking giant on 27 August, as well as an increase over the €3.50-3.80/share initially suggested.

It equates to a total equity value for PNE of approximately €306 million and total enterprise value of approximately €360 million, the banking giant added.

PNE’s boards support the offer, which requires a minimum acceptance ratio of 50% plus one share to be approved, plus regulatory authorities need to give their permission. 

The German developer’s stock price rose 4.27% to €4.03 in early trading on 10 October, following the announcement of the planned takeover offer.

MSIP's subsidiary Photon Management is managing takeover. It has also entered into a purchase agreement to acquire 11% of PNE’s total share capital from the German developer’s largest investor group, thereby already securing the stake required for a takeover bid.

Under German law, any shareholder that acquires a controlling stake of at least 30% must launch a public offer for the outstanding shares.

Position

In the first half of the year, PNE more than tripled its operating profit (Ebit) to €12.9 million and reported revenues of €65.6 million, up 130%.

It also commissioned or started construction on 404MW of wind farms, mostly in its core markets of Germany and France.

Markus Lesser, PNE’s CEO, added: "Over the course of our talks, we have gotten to know MSIP as a highly professional and long-term partner.

"Their strong support for our long-term business model and in particular for our scaling-up strategy, as well as for our employees and existing business units, have convinced us. Not least, we welcome the offered attractive premium for our shareholders."

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