KKR plans to launch a voluntary public takeover offer to all shareholders of Encavis AG for an equity value of around €2.8 billion.
Elbe Bidco, an investment vehicle owned by KKR, plans to offer a cash consideration of €17.50 per Encavis share. This represents an attractive premium of 54% to the undisturbed closing share price and 33% to the undisturbed three-month volume-weighted average share price as of March 5, 2024.
Abacon Capital and other existing shareholders have signed binding agreements to sell around 31%, partly roll over Encavis shares to Bidco, and fully support the offer.
The offer, subject to various Offer conditions, is projected to close in the fourth quarter of 2024. Family company Viessmann will invest as a co-investor in the consortium led by KKR. Bidco aims to boost growth in all segments of Encavis and targets to reach 7 GW of installed capacity by year-end 2027.
The deal is also subject to a minimum acceptance threshold to ensure Bidco will retain at least 50% of the shares at closing. KKR’s cash and investments stood at $29 billion as of FY23-end.
Price Action: KKR shares are trading lower by 0.83% at $97.14 on the last check Thursday.
