Encavis AG's management and supervisory boards have issued a formal recommendation urging shareholders of the German wind and solar parks operator to consider accepting the bid extended by KKR & Co Inc, valuing the business at approximately EUR 2.8 billion (USD 2.99bn).
In a statement released on Thursday, Encavis disclosed that following a comprehensive review of the offer document submitted by the bidder, both boards have reaffirmed their support for the transaction and advised investors to accept the public takeover offer.
The bid, launched by KKR and co-investor Viessmann Group at EUR 17.50 per share on April 24, marks a significant move in the realm of renewable energy investments. KKR, already holding a 31% stake in Encavis, aims to secure an acceptance rate of 54.285% by May 29 to validate the offer's success.
However, the success of the proposed transaction is contingent upon obtaining regulatory approvals, with both parties anticipating completion by the fourth quarter of 2024.
In a strategic move disclosed in early March, KKR expressed its intent to acquire Encavis, subsequently announcing its readiness to launch a tender offer shortly after.
