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European Energy Assets SA, a Luxembourg company has announced its intention to raise €120 million in an
initial public offering (“IPO”) on Euronext Amsterdam.
EEA was incorporated
in 2007 as a Special Purpose Acquisition Company (”SPAC”) to acquire
companies in the European downstream energy sector, with a focus on
distribution, storage and marketing activities. The Company will seek
to announce its first acquisition within 18 months of the date of the
IPO.
The IPO consists of 15 million Units, each unit being one Share and one
Warrant, at a Unit price of €8.00. With the possible issue of
additional units, plus a 15% over-allotment option, the offering may
raise up to €161 million. Units, Shares and Warrants of EEA will all be
listed on Euronext Amsterdam.
The founding shareholders of EEA, which include all of the Board of
Directors and the executive management of the Company, have invested a
total of €3.55 million as “at risk capital” before the IPO (“the
Private Placement”).
Following the conclusion of the IPO, about 97.9% of its proceeds,
including the amount of the Private Placement, will be deposited in an
interest bearing escrow account at Citibank, London, and held until a
vote by the public shareholders approves the first acquisition by the
Company. Only after such approval is received will the escrowed funds
be released to finance the acquisition. The funds in escrow, including
a portion of the net interest, would be available to be repaid to the
public investors in the event that the Company fails to make an
acquisition within 24 months following the date of the IPO.
The Company intends to acquire an operating business in the energy
transportation, storage, wholesaling or fuel retailing sectors, or a
business which includes a combination of these activities. Commenting
on the launch of the IPO, EEA’s Chairman of the Board, Lord Fraser, the
former UK Energy Minister, said “This is a great team with a wealth of
experience and a wide set of skills in the sector. I strongly believe
we will deliver value to our shareholders by making the right first
major transaction, improving its operational results, expanding the
business and achieving further growth through subsequent synergistic
asset purchases.”
Christian Cleret, Chief Executive Officer of EEA, remarked “In the
European downstream energy sector there are many attractive acquisition
opportunities, from oil majors' divestments or from large private
companies, and we will begin to evaluate acquisition targets
immediately following the IPO. EEA will be a unique listed vehicle for
investors to take a direct stake in the downstream energy sector, in
which we foresee great potential.”
PetrolWorld 040608 Source: EEA
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