ABO Energy and Metzler discuss potential sale of controlling stake

A spokesperson for ABO Energy said that the private bank Metzler has been asked to provide advice on a potential deal in which the founders of the German renewables company could cede control to a third party.

ABO Energy which builds wind and solar farms announced on Friday that it also wanted to become a renewable energy asset operator. It said it was in talks with potential investors, and the discussions could include a possible capital increase.

It said that a potential deal could lead to the two founding families of the company reducing their combined share from 52% to less than 25%, and also reversing a legal change made last year.

ABO Energy is valued at 329 million euros ($386 millions) and has a 34-gigawatt development pipeline. It is also owned by Mainova to a 10% extent.

Enkraft, an activist investor and ABO Energy shareholder, sought last year to appoint an auditor special to determine whether the company had informed its shareholders too late of the change in legal form that effectively concentrated power among the main owners.

Enkraft stated that the case was still before the Frankfurt district courts and the decision had not been made yet. Reporting by Christoph Steitz Editing Madeline Chambers

(source: Reuters)