European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>KKR offers €17.50/share for <a href="https://www.smartkarma.com/entities/encavis-ag" target="_blank" data-smartkarma-citation="entities:21595:1" rel="noopener">Encavis AG (ECV GR)</a>, 53% premium, implied equity value of €2,818 million. This shows interest in renewables after the falls on the stock market in 2023-24.</li>
<li>The offer represents 12.7x EV/Fwd NTM EBITDA and 32.4x Fwd P/E. On  a P/E basis, the offer seems fair vs. (depressed) comparables.</li>
<li>Given the current negative perception surrounding renewable energy companies, I think the shareholders are likely to tender at an attractive price. Spread is 3.77%/5.24% (gross/anualised, assuming closing by mid-December).</li>
</ul>


KKR offers €17.50/share for Encavis AG (ECV GR), 53% premium, implied equity value of €2,818 million. This shows interest in renewables after the falls on the stock market in 2023-24.
The offer represents 12.7x EV/Fwd NTM EBITDA and 32.4x Fwd P/E. On  a P/E basis, the offer seems fair vs. (depressed) comparables.
Given the current negative perception surrounding renewable energy companies, I think the shareholders are likely to tender at an attractive price. Spread is 3.77%/5.24% (gross/anualised, assuming closing by mid-December).


<ul>
<li>The agreed Offer has been successful. KKR will hold 83.44% of Albioma’s share capital following the first offer period. The Offer will shortly be reopened at the same price.</li>
<li>Albioma is being taken at 11.4x EV/Fwd EBITDA and 25.1x Fwd P/E, although not as rich as other recent deals, I believe holdouts will tender in the Reopened Offer.</li>
<li>Recommendation is tender rather than wait for an implementation of a forced sale.</li>
</ul>


The agreed Offer has been successful. KKR will hold 83.44% of Albioma’s share capital following the first offer period. The Offer will shortly be reopened at the same price.
Albioma is being taken at 11.4x EV/Fwd EBITDA and 25.1x Fwd P/E, although not as rich as other recent deals, I believe holdouts will tender in the Reopened Offer.
Recommendation is tender rather than wait for an implementation of a forced sale.


KKR/Albioma: Offer Success and Reopening of Offer Period

<ul>
<li>KKR has agreed with Albioma on a €50/share+€0.84 dividend offer, €1,583 million implied equity value, c. €2,543 million implied EV. The consideration represents 11.4x EV/Fwd EBITDA and 25.1x Fwd P/E.</li>
<li>The multiples are not as rich as in the Falck transaction, but most shareholders will be happy to tender at a 52% premium. </li>
<li>Albioma closed at €50.7 (a 15.9% increase vs. the prior closing price). Gross spread is 0.28%, and the annual estimated return, assuming settlement by 5 August, is 1.03%, probably low.</li>
</ul>


KKR has agreed with Albioma on a €50/share+€0.84 dividend offer, €1,583 million implied equity value, c. €2,543 million implied EV. The consideration represents 11.4x EV/Fwd EBITDA and 25.1x Fwd P/E.
The multiples are not as rich as in the Falck transaction, but most shareholders will be happy to tender at a 52% premium. 
Albioma closed at €50.7 (a 15.9% increase vs. the prior closing price). Gross spread is 0.28%, and the annual estimated return, assuming settlement by 5 August, is 1.03%, probably low.


KKR / Albioma: Agreed Offer, Est. Timetable

<ul>
<li>KKR is considering the takeover of recently underperforming renewable energy producer Albioma. The sector is trendy due to low real interest rates, increasing electricity prices and interest from infrastructure funds.</li>
<li>The deal should increase KKR's exposure in renewable energies across geographies (Albioma has exposure to France, Mauritius, Brazil and others, and accelerate Albioma's growth.</li>
<li>Awaiting for further news, comparables are trading at a median 14.7x EV/Fwd EBITDA, thus the implied equity value of Albioma would be €62.2/share. Falck was taken at 16.3x EV/Fwd EBITDA.</li>
</ul>


KKR is considering the takeover of recently underperforming renewable energy producer Albioma. The sector is trendy due to low real interest rates, increasing electricity prices and interest from infrastructure funds.
The deal should increase KKR's exposure in renewable energies across geographies (Albioma has exposure to France, Mauritius, Brazil and others, and accelerate Albioma's growth.
Awaiting for further news, comparables are trading at a median 14.7x EV/Fwd EBITDA, thus the implied equity value of Albioma would be €62.2/share. Falck was taken at 16.3x EV/Fwd EBITDA.


France

Albioma SA generates energy from biomass produced by agriculture activities and is agribusiness's energy partner.

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Albioma SA (ABIO FP)

KKR/Encavis AG: Voluntary Offer

KKR offers €17.50/share for Encavis AG, showing interest in renewables post-stock market falls. Offer seems fair vs. comparables. Shareholders...

Jesus Rodriguez Aguilar

KKR/Albioma: Offer Success and Reopening of Offer Period

Following success of the offer period (83.44% acceptances), KKR intends to reopen the offer with the aim of holding at least 90% and implement a...

Jesus Rodriguez Aguilar

KKR / Albioma: Agreed Offer, Est. Timetable

Following two months of conversations, on 28 April, KKR said that it has agreed to launch a public tender offer for French renewables producer...

Jesus Rodriguez Aguilar

KKR/Albioma: Takeover Interest

According to BBG, KKR is considering the takeover of Albioma to expand in renewable energies. Renewable energies are once again in the spotlight...

Jesus Rodriguez Aguilar

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52-week Range

Market Cap (USDm)

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KKR/Encavis AG: Voluntary Offer

​KKR offers €17.50/share for Encavis AG, showing interest in renewables post-stock market falls. Offer seems fair vs. comparables. Shareholders...

Jesus Rodriguez Aguilar

KKR/Albioma: Offer Success and Reopening of Offer Period

Following success of the offer period (83.44% acceptances), KKR intends to reopen the offer with the aim of holding at least 90% and implement a...

Jesus Rodriguez Aguilar

KKR / Albioma: Agreed Offer, Est. Timetable

Following two months of conversations, on 28 April, KKR said that it has agreed to launch a public tender offer for French renewables producer...

Jesus Rodriguez Aguilar

KKR/Albioma: Takeover Interest

According to BBG, KKR is considering the takeover of Albioma to expand in renewable energies. Renewable energies are once again in the spotlight...

Jesus Rodriguez Aguilar

KKR offers €17.50/share for Encavis AG, showing interest in renewables post-stock market falls. Offer seems fair vs. comparables. Shareholders...