Morgan Stanley prepares to put PNE on the block

Morgan Stanley (NYSE:MS) is planning to launch preliminary talks on the sale of its entire interest in German wind power-focused renewables company PNE AG (ETR:PNE3) about three years after failing to take a majority stake in the business.

The US investment bank, which is PNE's largest shareholder with 39.80%, has informed the German company's board of its plan to hold open-ended talks with interested investors, PNE said on Thursday evening.

The management board of the German company supports the preliminary discussions.

Under German law, the potential sale of Morgan Stanley's entire stake held through Photon Management GmbH would oblige the buyer of the shares to make a takeover offer for the remaining shares in PNE.

PNE noted that the US investor has not made a final decision on its exit.

PNE's shares were trading 1.41% higher at EUR 18.74 at 0947 CET on Friday in Frankfurt, giving the company a market value of EUR 1.44 billion (USD 1.41bn). Based on the share price, Morgan Stanley's stake is worth EUR 573 million.

Morgan Stanley acquired 39.80% of PNE following a takeover offer in 2019 in which it failed to reach the required shareholding to delist the target company as it was planning. The offer was supported by PNE's board of directors but faced fierce opposition from some of its major shareholders such as Active Ownership Capital and Enkraft Capital which considered the offered price of EUR 4 per share too low.

(EUR 1 = USD 0.981)

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