Scatec stock price stymies extra shares issue plan

Shares in the Norwegian renewables company have been trading below the $26 price linked to a recent $527 million fundraising issuance which the developer launched to fund its planned acquisition of hydropower business SN Power.

The International Energy Agency may today have lauded the rising stock value of solar companies in its Renewables 2020 report but the rollercoaster ride shares have been on during the Covid-19 crisis was illustrated this morning by the Scatec Solar share price.

Norwegian renewables developer Scatec had, last month, announced plans to issue 2 million more shares which could be purchased by stakeholders locked out of a NOK4.75 billion ($527 million) private placement launched to help fund the company's planned purchase of state-owned, compatriot hydropower business SN Power.

The idea was to issue the extra stock at the private placement price of NOK230 ($25.54) per share to help investors shut out of the private placement reduce the dilutive effects of that offering, with the move set to be rubber stamped by an extraordinary general meeting to be held in Oslo on Thursday.

However, fluctuations in the Scatec share price prompted the company to announce this morning: “The company has decided not to proceed with the subsequent offering. Since the announcement of completion of the private placement, the company's shares have traded on the Oslo Stock Exchange – with significant trading volume – at prices below the subscription price in the private placement of NOK230. Accordingly, any shareholders wishing to reduce the dilutive effect of the private placement have had the opportunity to purchase shares in the company in the market at prices below what would have been the subscription price in a subsequent offering.”

Scatec has shouldered one-year finance of $700 million to fund its planned acquisition of SN Power with the deal, which is subject to regulatory approvals, enabling it to exploit floating solar opportunities.

Some $300 million of the cash raised by last month's private placement has been earmarked to repay part of that finance and the company previously said it planned to hold a vote at Thursday's meeting on the issuance of 6.9 million shares to replace the volume of stock in the private placement which was borrowed from Scatec AS shareholders. This morning's announcement made no reference to that transaction.

Lắp đặt điện mặt trời Khải Minh Tech
https://ift.tt/2X7bF6x
0906633505
info.khaiminhtech@gmail.com
80/39 Trần Quang Diệu, Phường 14, Quận 3
Lắp đặt điện mặt trời Khải Minh Tech
https://ift.tt/2ZH4TRU