Morgan Stanley subsidiary to buy PNE for €300m

Jack Unwin 10 October 2019 (Last Updated October 10th, 2019 14:23)

Morgan Stanley Infrastructure Partners has concluded an investor agreement to buy German renewables developer Pure New Energy (PNE).

Morgan Stanley subsidiary to buy PNE for €300m
Facebook agrees second power purchase agreement with Apex Clean Energy in 2019. Credit: Department of Customer Service.

Morgan Stanley Infrastructure Partners (MSIP) subsidiary Photon Management has concluded an investor agreement to buy German renewables developer Pure New Energy (PNE).

Talks between the two companies have been ongoing since August 2019 when Photon made an offer of €3.50 to €3.80 a share, giving PNE a value of €295m. However, a leading PNE shareholder described the offer as “completely inadequate” at the time.

Photon has since offered €4 a share, which gives PNE a total equity value of €306m and an enterprise value of €360m.

Following news of the investment PNE’s share price rose on the Frankfurt Stock Exchange by over 4% from €3.78 to €4.02 a share, its highest price in 2019, which gave the company a current market cap value of €304.7m. This has continued PNE’s rising share price trend throughout 2019, which started at €2.42 a share.

Pure New Energy share price in 2019

PNE supervisory board chairman Per Hornung Pedersen said: “We welcome MISP’s offer and believe that it offers fair and equitable value to shareholders. In addition, the offer promises the company and its other stakeholders a long-term stable and positive perspective and leading position in a future market.”

MSIP executive director Christoph Oppenauer added: “We can provide significant additional know-how and financial backing to accelerate PNE’s strategic growth.

“We will be working with management to continue building a sustainable and competitive renewable energy platform, which will contribute towards achieving the renewable energy build-out targets of governments in PNE’s core markets.”

The deal is subject to standard anti-trust and foreign investment control approvals from the Federal Financial Supervisory Authority in Germany, and once MSIP owns more than 50% of the company it will have to delist PNE.

Morgan Stanley’s investment in PNE would reflect the company’s policy of providing $250bn for low-carbon financing by 2030.