Private equity firm EQT has made a notable cash offer to acquire OX2, a prominent Swedish renewable energy company, for a total of 16.4 billion crowns ($1.51 billion).
Under the terms of the offer, EQT is proposing to buy each OX2 share for 60 crowns, marking a substantial 43% premium over OX2's closing price on Friday. The offer has garnered initial support, with Peas Industries AB, OX2's major shareholder holding 46% of shares and votes, already committed to accepting the offer. Additionally, an independent bid committee at OX2 has unanimously recommended that shareholders consider the proposal.
EQT's strategic vision for OX2 involves expanding its role beyond pure development to become an integrated renewables developer and asset owner. EQT aims to facilitate this transition by providing capital and industry expertise, positioning OX2 for accelerated growth.
Christoph Balzer, a partner at EQT, expressed confidence in the renewables sector, stating, “We think the market opportunities are there.”
However, EQT's offer is subject to regulatory approval and requires acceptance by owners of more than 50% of OX2 shares. The firm aims to achieve 90% ownership and subsequently delist OX2.
Despite EQT's significant presence in the renewables sector across Europe and the US, the firm clarified that it does not intend to merge OX2 with its existing renewable businesses. “We have very established solar platforms in the US and Europe, but we are not planning to put it together,” Balzer explained.
The announcement has led to a notable increase in OX2's shares, rising by 42% in early trading, while EQT's shares remained relatively stable.
EQT's proposal to acquire OX2 reflects its strategic interest in capitalizing on opportunities within the renewables sector, potentially reshaping the Swedish renewable energy landscape.
