January 25 (Renewables Now) - French energy group Engie (EPA:ENGI) said on Wednesday it will buy a majority stake in Electro Power Systems (EPA:EPS), a Paris-based energy storage solutions and microgrids company.
Engie has entered into an agreement to acquire a stake of slightly more than 50% of the share capital and voting rights in EPS from 360 Capital Management, Ersel Asset Management SGR and Prima Industrie, as well as from members of the board of directors and company managers. The buyer of the stake will pay EUR 9.5 (USD 11.8) per share.
According to Euronext data, EPS' market capitalisation amounts to EUR 85 million. As at 1319 CET, the company's share price had fallen by about 11% to EUR 10.15 since the previous close.
The transaction is expected to wrap up in the first quarter of 2018, after which a simplified mandatory tender offer will be filed. Engie noted it plans to maintain the listing of EPS shares at the end of the offer.
EPS develops utility-scale energy storage systems for renewables-heavy electrical grids in developing countries. The company also develops microgrids in emerging economies to power off-grid areas. To date, it has implemented 36 projects in 21 countries, including off-grid hybrid systems and microgrids, totalling 47MWh.
(EUR 1.0 = USD 1.240)