The board of Sweden-based bio-LNG producer Scandinavian Biogas has urged its shareholders to reject the proposed takeover offer by Norway’s Aneo Renewables.
“The board of directors of Scandinavian Biogas Fuels International unanimously recommends the shareholders of the company not to accept Aneo Renewables mandatory offer of 15.45 Swedish crowns per share in cash,” the firm said in a statement on Thursday.
Aneo, a joint venture of TronderEnergi and HItecVision established this year, now has 36.1 percent of the total number of shares and votes in Scandinavian Biogas Fuels International.
In accordance with Swedish takeover rules, the firm is obliged to make a mandatory tender offer for the remaining shares and the company made the move last week.
This offer values Scandinavian Biogas at 670 million Swedish crowns ($64 million), according to Aneo.
Also, the acceptance period of the offer started on November 28 and will expire on December 19, 2022.
As a part of the assessment of the offer, the board of Scandinavian Biogas has engaged ABG Sundal Collier to provide an opinion regarding the offer.
ABG Sundal Collier believes that the offer “cannot be considered reasonable from a financial perspective for the shareholder,” Scandinavian Biogas said.
After carrying out the evaluation, the board “asses that the terms and conditions of the offer do not reflect the long-term growth prospects of Scandinavian Biogas, also considering the identified risks of the business and the general market conditions,” the firm said.