Press release Halmstad 11 March 2010
Arise Windpower AB to list at NASDAQ OMX Stockholm
Arise Windpower AB (publ), an integrated wind power company with a high-quality
project portfolio in southern Sweden, has applied for a listing of its shares
on NASDAQ OMX Stockholm, main list, and will concurrently raise new capital and
broaden the ownership of the company through an offer to acquire shares
corresponding to up to MSEK 687.
The offer comprises a new issue of MSEK 550 corresponding to 8,461,538 -
10,000,000 new shares and a sale of 730,000 existing shares, as well as an
over-allotment option of up to approximately MSEK 90 through a new issue of up
to 1,609,500 shares
Price range SEK 55 - 65 per share
Application period for the public offer 12 March - 22 March 2010
Estimated first day of trading 24 March 2010
The Board of Directors of Arise Windpower AB has decided to raise new capital
and broaden the ownership of the company through an offer to acquire new shares
in Arise Windpower AB and the listing of the company's shares on NASDAQ OMX
Stockholm, main list. In connection with the Board of Directors' decision to
apply for listing, the company's founders have, as owners of Arise Windpower
AB, decided to sell 12.4 per cent of the founders' shareholding in Arise
Windpower AB. The founders, CEO Peter Nygren and Board members Leif Jansson and
Ulf Corné, will remain significant long-term owners in the company.
”Arise Windpower AB is an industrial wind power company well suited for listing
on NASDAQ OMX Stockholm. We are in the process of conducting a large-scale
build-out of 300 large wind power turbines, which requires a significant amount
of equity in combination with debt and operational cash flows. The existing
wind power operations already generate positive cash flows which means that new
capital raised will exclusively be used for investments in new wind farms. The
proposed capital raising secures equity financing for over 100 new wind power
turbines”, comments Pehr G Gyllenhammar, Chairman of the Board in Arise
Windpower AB.
”Arise Windpower AB has reached a number of important milestones during the
past year; we have completed or initiated construction of almost 30 turbines,
signed long-term framework agreements with GE Energy and Vestas for up to 132
turbines and secured a high-quality project portfolio of over 900 MW. Our
industrial business model is tested and proven through our last two projects,
Råbelöv and Brunsmo (22.5 MW), which were completed at a cost below budget. We
are convinced that our focus on southern Sweden, where we can achieve
competitive construction and operational costs, and our industrial large-scale
approach enable a rapid expansion and strong future cash flow generation. We
will conduct a rapid and capital intensive build-out during the coming years
and a listing on the NASDAQ OMX Stockholm main list is therefore a natural
progress”, comments Peter Nygren, CEO of Arise Windpower AB.
Press conference at 3 pm CET
With reference to the decision to apply for a listing of its shares on NASDAQ
OMX Stockholm, main list, Arise Windpower AB will hold a press conference
today, 11 March 2010 at 3 pm CET, at NASDAQ OMX's offices, Tullvaktsv. 15,
Stockholm. Pehr G Gyllenhammar and Peter Nygren will lead the press conference.
The press conference is also available at
www.arisewindpower.se/investor-relations/
Background and reasons
Arise Windpower AB has taken the initiative to invest in a large-scale
expansion of wind power with the target of erecting 300 wind turbines in
southern Sweden, which, in the company's view, is a part of the country that is
well suited for the establishment of new wind power. The company believes that
it is possible to create a new, strong Swedish power company based entirely on
the production of renewable energy and achieve a good return on invested
capital.
Through previous share offerings and access to debt finance Arise Windpower AB
has initiated the realisation of its project portfolio, which comprises more
than 900 MW of wind power in southern Sweden. The first wind farm, with a
capacity of 24 MW, became operational in spring 2009 and was followed by
another two wind farms with a combined capacity of 22.5 MW, which were put into
or are scheduled to be put into operation in winter 2009/2010. In addition to
these, one wind farm with a capacity of 15 MW is currently under construction
and is expected to be operational in autumn/winter 2010. Once all these wind
farms are up and running, 61.5 MW in total, the company will be cash
flow-positive. The planned offer is therefore intended to be used, along with
existing equity capital and additional debt funding, exclusively for
investments in further new wind farms in 2010 and 2011.
The company's long-term target, to have erected about 300 land-based wind
turbines in the 1.8-3.0 MW category by the end of 2014, represents an
investment of about MSEK 10,000 - 11,000 and a combined output of about 2 TWh
of renewable electricity.
Although the opportunity for self-funding will increase in line with increasing
cash flow from new wind farms, the achievement of the company's long-term
target will require additional capital in addition to that raised under the
offer now being planned. Arise Windpower AB is convinced that an expanded
ownership structure and financial strength will create favourable prospects to
achieve the company's targets. To improve access to the capital market, Arise
Windpower AB has therefore applied to have the company's shares listed on
NASDAQ OMX Stockholm, main list.
Arise Windpower AB in brief
Arise Windpower AB's wind power business was launched in 2006 by Peter Nygren,
Ulf Corné and Leif Jansson together with Mats Olofsson. Since then, Arise
Windpower AB has evolved into a leading player in the Swedish wind power
market. Arise Windpower AB's business concept is to be an integrated wind power
company with control over all stages of the value chain: from prospecting and
permit management to funding, construction and operation of the turbines. The
company's approach is industrial and results-oriented, which means that the
business is built up methodically and through multiple parallel projects, and
that the company purchases input goods in a systematic and coordinated manner.
This minimises the costs of project development and inputs while ensuring that
permits for new wind farms are continually available for ongoing construction.
The company invests only in wind farms that are expected to generate returns on
total invested capital before tax of at least 10 per cent. Arise Windpower AB
intends to keep wind farms that have been put into operation, which means that
particular emphasis is placed on quality and on maximising the electricity
generated by each turbine rather than on maximising the number of turbines in a
given area. The company also attaches a lot of importance to calibrating and
optimising operational wind farms and on ensuring a high level of availability.
This work is an ongoing process that is integrated into the company's
procedures and work methods and continues throughout the life of a turbine.
A geographically concentrated portfolio in southern Sweden
Arise Windpower AB has since its inception in 2006 concluded about 250 land
lease agreements in southern Sweden and established an extensive project
portfolio comprising over 45 projects for the erection of over 400 large wind
turbines which, after completion of significant wind farm optimisation measures
to maximise productivity and returns, will have a total capacity of over 900
MW. A geographically centralised portfolio ensures efficient project
development, construction and operation to maximise profitability. Moreover the
concentration to southern Sweden means access to a strong grid, that
construction is possible all year round and a geographical production advantage
as transmission costs are favourable in southern Sweden.
Large-scale, industrial expansion
Arise Windpower AB's approach is industrial and results-oriented, which means
that the business is built up methodically and through multiple parallel
projects, and that the company purchases input goods in a systematic and
coordinated manner. This minimises the costs of project development and inputs
while ensuring that permits for new wind farms are continually available for
ongoing construction. Through framework agreements with GE Energy and Vestas
for delivery of wind turbines, Arise Windpower AB has secured the majority of
its planned construction plans during the period 2010-2012. The company invests
only in wind farms that are expected to generate returns on total invested
capital before tax of at least 10 per cent.
Organisation with key expertise
Arise Windpower AB has built up a team of individuals with significant
experience and a wide range of expertise to ensure that it is able to
internally manage all critical stages of the development of wind power projects
from prospecting to operations and maintenance of installed capacity from an
industrial and large-scale perspective. In December 2009 the company had 21
employees as well as a small number of consultants working on project planning
and construction of new wind farms. Arise Windpower AB continuously works close
to suppliers of wind turbines and other input goods to optimise the development
of future projects at as early a stage as possible.
Information about the offer
The offer to acquire shares in Arise Windpower AB comprises:
the acquisition of not more than 10,000,000 and not less than 8,461,538 new
shares in Arise Windpower at the bottom end and the top end of the price range,
respectively. The issuance of new shares under the offer can increase the
number of shares by up to 10,000,000, from 21,561,070 to 31,561,070, and by at
least 8,461,538, from 21,561,070 to 30,022,608, representing an increase in the
number of shares of 39.2 - 46.4 per cent;
and the acquisition of 730,000 existing shares in Arise Windpower;
together representing 30.6 - 34.0 per cent of the shares and votes in the
Company if the offer is fully subscribed.
In addition, the company has agreed to undertake to issue and allot, at the
request of ABGSC and no later than the date occurring 30 days after the first
day of trading in the company's shares on NASDAQ OMX Stockholm, another 15 per
cent of the shares in the offer, to cover any potential over-allotment. The
over-allotment option will comprise no more than 1,609,500 additional new
shares.
If the offer is fully subscribed, including exercise of the over-allotment
option, the company will, through the issuance of new shares under the offer,
raise approximately MSEK 640, before expenses relating to the offer. If the
offer is fully subscribed the founders will receive MSEK 40 at the bottom end
of the price range and MSEK 47 at the top end of the price range, before
expenses relating to the offer.
The offer is aimed at the public in Sweden and to Swedish and certain
international institutional investors. The price per share for all shares
covered by the offer will be fixed through a form of bidding process aimed at
institutional investors and is expected to be fixed in the SEK 55 - 65 per
share range. The offer price to the public will be the same as for
institutional investors, except that the offer price to the public may not
exceed SEK 65 per share.
ABG Sundal Collier acts as financial advisor, or “Lead Manager & Bookrunner” in
connection with the offer and Setterwalls Advokatbyrå acts as legal advisor.
Avanza Bank and Nordnet Bank act as selling agents for retail in the public
offer.
The prospectus will be available from Arise Windpower AB's website,
www.arisewindpower.se, as well as www.abgsc.se, www.avanza.se and
www.nordnet.se from around 10 am today. Printed prospectuses will also be
available from Arise Windpower AB's head office as well as from Avanza Bank's
and Nordnet Bank's offices. Application forms can be obtained from Arise
Windpower AB and Avanza Bank at www.arisewindpower.se and www.avanza.se as well
as in printed form from Arise Windpower AB's and Avanza Bank's offices.
Preliminary timetable
Publishing of prospectus: 11 March 2010
Application period for the public offer: 12 March - 22 March 2010
Application period for the institutional offer: until 23 March 2010
First day of trading: 24 March 2010
For further information, please contact
Peter Nygren, CEO Arise Windpower AB
+ 46 706 300 680
+ 46 35 20 20 900
info@arisewindpower.se
Arise Windpower AB is a leading Swedish company within onshore wind power. The
company's business concept is to sell electricity produced by its own
land-based wind turbines located in southern Sweden. The company's target is to
have erected about 300 land-based wind turbines with a combined annual output
of about 2 TWh of renewable electricity.
Arise Windpower AB (publ), P.O Box 808, 301 18 Halmstad Sweden,
www.arisewindpower.se Org.nr. 556274-6726
