Shareholders group says Morgan Stanley's bid undervalues PNE

Small shareholders group SdK has determined that Morgan Stanley Infrastructure Partners’ (MSIP) tender offer for shares of PNE AG (ETR:PNE3) undervalues the German wind project developer.

SdK says in a statement quoted by Reuters that it considers the cash compensation of EUR 4.00 (USD 4.40) per share to be inadequate and recommends that PNE’s shareholders keep their stock and wait for a sweetened bid.

MSIP, through Photon Management GmbH, launched the tender offer at the very end of October, valuing PNE’s equity at EUR 306 million. Before SdK's statement, the bid was opposed by Top 10 shareholders Enkraft Capital GmbH and Active Ownership Capital. Enkraft insists that a fair bid should stand between EUR 6.90 and EUR 7.10 per share.

MSIP had already secured a stake of 21.9% under the tender bid as of November 15 and is targeting an interest of more than 50%. The offer will run until November 28.

PNE is a wind project developer slowly diversifying into solar power, with July-September 2019 revenues of EUR 72.6 million. As at September 30, 2019, PNE had 5 GW of onshore wind projects in its pipeline.

(EUR 1.0 = USD 1.101)

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