Hamburg-based Capital Stage AG will submit a voluntary takeover offer for CHORUS Clean Energy AG. The two German renewable energy companies have already signed a Business Combination Agreement, but the proposed merger, which is backed by some leading shareholders of CHORUS, is intended to give them a stronger position in their core markets.
The offer, which will be put forth by Capital Stage AG, is for all of the outstanding shares of CHORUS, and an offer of five shares of Capital Share in exchange for every three shares of CHORUS, tendered to Capital Share during the Takeover Offer. A business combination agreement has been signed by the two parties, which sets out the core elements of the transaction and a common understanding regarding the future business cooperation if the takeover is completed.
CHORUS largest shareholder and chairman Peter Heidecker has already agreed to the deal, as have various other members of the management board of CHORUS. Combined, they own shares representing around 15% of CHORUS.
The joint goal of the merger is to create a strong, independent operator of wind and solar parks, which can increase its geographical coverage and which will benefit from operational and financial cooperation. If the merger is completed, the joint company will have a total operational capacity of 900 MW of solar and wind energy. The possible merger is expected to be finalized by the end of the third quarter of 2016.