Capital Stage makes takeover offer for Chorus to create 900-MW portfolio

German solar and wind farm operator Capital Stage AG (ETR:CAP) is launching a voluntary takeover offer for all of Chorus Clean Energy AG (FRA:CU1) with the goal of creating a new company with over 900 MW of capacity.

As announced today, Capital Stage is offering five own shares for three Chorus shares. The newly issued shares of Capital Stage will be entitled to dividends from January 1, 2016.

The offer translates into around EUR 11.52 (USD 12.8) per Chorus share or a 36% premium for the target’s stockholders, based on the three months volume weighted average of the two firms before announcement. The holders of about 15% in Chorus have committed to accept Capital Stage’s offer.

The combination will create a leading wind and solar power plant operator in Germany with a market capitalisation of over EUR 800 million. Completion of the takeover is expected by September 2016.

“With joint forces we will be even better able to benefit from the opportunities of market growth and consolidation in Germany and Europe. In addition, the combined company will have a more attractive capital markets profile due to increased size and liquidity,” commented Holger Goetze, CEO of Chorus.

Latham & Watkins is the legal advisor and Lazard is the financial advisor to Chorus. Macquarie Capital and CMS Hasche Sigle are the financial advisor and legal advisor, respectively, for Capital Stage.

(EUR 1 = USD 1.110)

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