Cloudberry Clean Energy ASA (OSE:CLOUD) has signed a letter of intent to potentially acquire 60% of Norwegian asset management group Captiva, with a view to beefing up its capabilities in hydro and wind development and operation.
The enterprise value of the entire target business has been pegged at NOK 160 million (USD 18.4m/EUR 16.2m) on a cash- and debt-free basis. Cloudberry said on Thursday that it would settle the transaction with Captiva Capital Partner AS in equal parts of cash and stock.
Under the terms, Captiva Capital will retain the remaining 40% of the target group, but Cloudberry will have the right to acquire the interest at a pre-determined price by June 30, 2025.
"With the acquisition of Captiva, we are adding important capabilities within development and operations of renewable assets in the Nordics. Cloudberry will retain a bigger share of the value created in our projects, and equally important, be positioned for further growth of our development and production portfolios," chief executive Anders Lenborg said.
Currently, the Norwegian renewable energy company largely relies on third parties to operate its assets, with Captiva being one of those providers.
For Captiva, the tie-up is seen to help further develop its industrial digital offerings in the renewable energy sector for both current and future clients.
The bidder has been granted exclusivity to complete due diligence checks until end-January 2022. Cloudberry, however, said that it will aim to close the deal by the end of 2021.
The acquisition also hinges on approval by Cloudberry's board. The company's chairman, Frank J. Berg, owns a 33% stake in Captiva Capital Partner AS through two investment vehicles.
(NOK 10 = USD 1.150/EUR 1.011)
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