Across the 25 projects, we provided a wide range of services related to merger and acquisition activity, including analysis of potential economies of scale and synergies, valuation, due diligence and ownership strategy.
THEMA had a record number of engagements related to structural changes in 2017. Now, at the beginning of 2018, another three valuation projects are already in progress. These include a valuation of Sogn and Fjordane Energi and Sunnfjord Energi, as the two companies consider merging.
Some non-confidential project references from our valuation and due diligence projects in 2017 include:
- Valuation of the generation-related grid and grid tariff impacts of selling Driva Kraftverk, for TrønderEnergi,
- Valuation of Ballangen Energi in connection with the sale of the grid business to Nordkraft,
- Valuation of Nord-Salten Kraft,
- Valuation of Hjartdal Elverk and Tinn Energi for a merger process,
- Regulatory due diligence analysis for a bidder in a capital raising process at Lofotkraft, and
- Valuation of SKS Kraftsalg and Kraftinor as a basis for the merger of the two companies into Polar Kraft
As part of power companies’ strategic analysis and planning, THEMA has assisted our clients with pre-merger analysis of potential economies of scale.
THEMA has also acted as advisor to Kraftinor and SKS Kraftsalg in their merger process, where our work covered facilitation of the initial negotiations, the development of a business plan and setting up the new organisation.
On behalf of The Norwegian Ministry of Petroleum and Energy, we analysed trends in the financial ratios of Norwegian power companies over the last five years. This work included an analysis of power companies’ access to new capital and the drivers for structural change (merger and acquisition activity).
For many years, THEMA has been a leading advisor to Norwegian municipalities seeking in developing their power utility ownership strategy. Recently, we acted as advisor to 6 municipalities with stakes in Vest-Telemark Kraftlag, helping them to develop their ownership strategy. As part of our wider advisory role, we have also updated our survey of corporate governance among Norwegian power companies.