Home Energy assets Falck Renewables shares soar as JPMorgan backed investor to buy company

Falck Renewables shares soar as JPMorgan backed investor to buy company

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By Mauro Orru

Shares of Italian Falck Renewables SpA surged on Wednesday after an investor backed by JPMorgan Chase & Co. agreed to buy a controlling stake that will trigger a takeover bid valuing the company at around $ 2.57 billion. euros ($ 2.99 billion).

At 09:15 GMT, Falck Renewables is trading 14% up to 8.71 EUR.

The company, which develops and manages power plants to generate electricity from renewable sources, said Infrastructure Investments Fund – a vehicle advised by JP Morgan Investment Management – has agreed to purchase an approximate 60% stake held by Falck SpA at 8.81 euros per share.

The transaction would strengthen the fund’s reach in the renewable energy sector as Falck Renewables has exposure in the UK, Italy, the US, Spain, France, Norway and Sweden.

The fund invests in infrastructure, with a focus on contracted energy assets and utilities.

Falck Renewables said the stake transaction is expected to close in the first quarter of next year, after which the fund will launch a mandatory cash offer to buy out Falck Renewables at the same price per share offered for the 60% stake.

The fund will then delist Falck Renewables.

Write to Mauro Orru at [email protected]; @ MauroOrru94


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