• EQT’s offer values OX2 at 16.4 billion crowns ($1.51 billion).
• The offer price is SEK 60 per share.
• OX2’s board recommends shareholders accept the offer.

Private equity firm EQT (EQTAB.ST) announced on Monday it has made a recommended cash offer to acquire Swedish renewable energy company OX2 (OX2SE.ST) for 16.4 billion Swedish crowns ($1.51 billion). The acquisition is set to enhance EQT’s renewable energy portfolio and drive OX2’s growth in the sustainable energy sector.

Offer Details:

• Premium Offer: The SEK 60 per share offer represents a 43.4% premium over OX2’s closing price of SEK 41.8 on May 10, 2024, the last trading day before the offer announcement. It also reflects a 45.8% premium over the volume-weighted average price over the last 30 trading days and a 29.2% premium over the last 90 trading days (EQT Group).
• Board Approval: OX2’s independent bid committee has unanimously recommended that shareholders accept the offer. Peas Industries AB, OX2’s largest shareholder, holding approximately 45.56% of shares, has committed to accepting the offer.

Strategic Rationale: EQT’s Partner Christoph Balzer stated, “EQT is impressed by OX2’s development into one of Europe’s leading renewable energy developers. The renewable energy industry is driven by strong underlying trends and is expected to grow significantly in the future. To achieve OX2’s full potential, it is beneficial for the company to transition to a more long-term and sustainable business model” (EQT Group).

Johan Ihrfelt, CEO of Peas Industries, commented, “This has been an emotional decision. But as OX2’s founder and largest owner, we believe that the company will benefit from EQT’s ownership to take the next step and enable the long-term vision” (EQT Group).

Market Context:

• Renewable Energy Demand: The acquisition aligns with the increasing global focus on renewable energy investments. OX2’s diversified portfolio, including onshore and offshore wind power, solar energy, and storage, positions it well to capitalize on the growing market.
• Future Growth: With EQT’s capital and expertise, OX2 aims to evolve from a pure developer to an integrated developer and owner of renewable energy assets, strengthening its market position amid rising interest rates and supply chain challenges (EQT Group).

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The transaction, subject to regulatory approvals, is expected to close in the second half of 2024. If successful, EQT plans to further invest in OX2’s operations, leveraging its industry expertise to support OX2’s growth and development