Morgan Stanley offers to take PNE private for EUR 306m

"Courtesy of PNE WIND AG"

October 10 (Renewables Now) - A firm owned by Morgan Stanley’s (NYSE:MS) global private infrastructure investment platform plans to launch a voluntary public offer to take over and delist German renewables company PNE AG (ETR:PNE3) at an equity value of EUR 306 million (USD 337m).

Photon Management GmbH, an indirect fully-owned unit of funds managed and advised by Morgan Stanley Infrastructure Inc and part of Morgan Stanley Infrastructure Partners (MSIP), will kick off a cash tender offer of EUR 4.00 per PNE share. The price is a 31% premium to PNE’s unaffected share price on August 26, 2019, the day before the wind power specialist unveiled a non-binding proposal from MSIP.

The formal bid represents a total enterprise value of about EUR 360 million, Photon Management said in a statement today. The offer will be deemed successful if it achieves a minimum acceptance ratio of 50% plus one share. The offer document will be released at a later time, but as of now, PNE's management board and supervisory board intend to recommend the bid for acceptance by the company’s shareholders. PricewaterhouseCoopers (PwC) and Latham & Watkins support PNE in the transaction.

The core business of PNE is project development. As at the end of June 2019, the company had 4,952 MW of onshore wind projects in different phases of development across 14 countries. In the final phase -- implementation -- are projects totalling 41 MW and all of them are located in Germany.

MSIP said in a statement that it plans to back and step up PNE’s build-up of a large portfolio of renewable energy assets, especially in its core markets of Germany and France. PNE itself noted that MSIP had expressed a strong commitment to the wind power company’s current strategy. Moreover, both parties agree that private ownership is the way to go for PNE in order to effectively execute that strategy.

“We can provide significant additional know-how and financial backing to accelerate PNE’s strategic growth,” commented Christoph Oppenauer, Executive Director at MSIP based in Frankfurt.

(EUR 1.0 = USD 1.102)

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