News Tag: Corporate Action

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, SOUTH AFRICA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SINGAPORE OR ANY OTHER JURISDICTION WHERE THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. FOR FURTHER INFORMATION, PLEASE SEE THE “IMPORTANT NOTICE” BELOW.

The Boards of Directors of Enersense International Plc (“Enersense” or “the Company”) and MBÅ Invest Oy (“MBÅ Invest “) have today decided to complete the merger of MBÅ Invest with Enersense in accordance with the merger plan signed on 23 September 2022. The registration of the completion of the merger in the Trade Register is expected to take place on 1 April 2023.

Issuing Enersense’s new shares to the shareholders of MBÅ Invest as merger consideration and cancellation of the Company’s shares transferred to Enersense in connection with the merger

According to the merger plan:

• The total number of Enersense’s new shares issued to the shareholders of MBÅ Invest as merger consideration is adjusted to match the total number of Enersense’s shares owned by MBÅ Invest on the effective date of the merger (“Total Amount of Merger Consideration”), however, such that the number of Enersense’s new shares to be issued as merger consideration may be a maximum of 2,253,072; and

• The distribution of the Total Amount of Merger Consideration among the shareholders of MBÅ Invest is based on MBÅ Invest’s ownership at the end of the day preceding the Effective Date of the Merger. As merger consideration, MBÅ Invest’s shareholders will receive, of the Total Amount of Merger Consideration, an amount of Enersense’s new shares that corresponds to the shareholder’s ownership in MBÅ Invest at the end of the day preceding the Merger’s effective date (“Merger Consideration”). If the number of Enersense shares received by a shareholder of MBÅ Invest as Merger Consideration (for each book-entry account) is a fraction, the number of new shares to be issued as Merger Consideration will be rounded down to the nearest whole share.

On the basis of the merger plan, a total of 2,176,068 new Enersense shares will be issued as Merger Consideration to the shareholders of MBÅ Invest. The shares issued as Merger Consideration are to be entered in the Trade Register on 1 April 2023, and trading in the new shares on Nasdaq Helsinki’s official list is expected to begin around 3 April 2023. 

Based on the merger plan, the Board of Directors of Enersense has decided to cancel the Enersense shares transferred to the Company in connection with the merger, totalling of 2,176,072 shares, and they are estimated to be removed from the Trade Register on 1 April 2023. Through the registration of the new shares issued as Merger Consideration on completion of the merger, and the cancellation of own shares transferred to the Company in connection with the merger, the number of Enersense shares will be 16,492,527 and the Company’s share capital will remain at EUR 80,000.

In connection with the merger, all shareholders of MBÅ Invest have committed to the transfer restrictions concerning the new Enersense shares they receive as Merger Consideration, as specified in greater detail in the provisions of the combination agreement made between the Company and MBÅ Invest and its shareholders. The transfer restrictions apply to a total of 100 percent of the shares received by MBÅ Invest’s shareholders as Merger Consideration for a period of 12 months from the listing of the shares, with the following exceptions:

(i)         Each MBÅ Invest shareholder has the right to sell or otherwise transfer, without limitations, a maximum of 50,000 shares;

(ii)        MBÅ Invest’s shareholders, except for Jussi Holopainen, Jaakko Leivo and Suotuuli Oy, have the right to sell or otherwise transfer their shares received as Merger Consideration without time limits as a so-called block trade, provided that in one and the same block trade carried out by the shareholder, the transfer includes at least 120,000 shares;

(iii)       Jussi Holopainen, Jaakko Leivo and Suotuuli Oy may, for the part that exceeds the amount specified under item (i), without limitations sell or otherwise transfer 50% of the shares they received as Merger Consideration after a period of twelve (12) months, and the remaining 50% of the shares after a period of twenty-four (24) months from the listing of the shares.

Other matters related to the completion of the merger

The purpose of the merger is to increase the transparency and equality of the ownership and governance of Enersense and to simplify its ownership structure.  The completion of the merger will bring MBÅ Invest’s holding better to the fore and also make the true ownership of Enersense’s executives in the Company transparent. The long-term transfer restrictions on shares concerning the new shares issued as Merger Consideration also serve to bind the Company’s management. The elimination of indirect ownership is also aimed at improving the liquidity of Enersense shares.

The costs incurred by the merger will be borne by MBÅ Invest, and the merger will not incur any costs or additional liabilities to Enersense. MBÅ Invest has not had employees, and it is not engaged in any other business than the management of its Enersense shares.

Related party transaction

The Merger constitutes a related party transaction for Enersense since MBÅ Invest has been Enersense’s related party exercising significant influence.  Furthermore, Enersense’s Board Member Petri Suokas, President and CEO Jussi Holopainen and Executive Team Member Jaakko Leivo are MBÅ Invest’s shareholders. Petri Suokas and Jussi Holopainen are also members of the Board of Directors of MBÅ Invest. According to the assessment by Enersense’s Board of Directors, the related party transaction is in the best interest of the Company, and it will be conducted under customary commercial terms. Petri Suokas, Jussi Holopainen and Jaakko Leivo have not participated in the discussion concerning the merger or in the decision-making of Enersense’s Board of Directors. The related party transaction was supported by all members of the Board of Directors of Enersense who are not in a related party relationship with MBÅ Invest or the matter to be resolved. 
 

ENERSENSE INTERNATIONAL PLC
Board of Directors

Further information:

Jaakko Eskola, Chair of the Board

Contact information:
Tommi Manninen, Communications and Public Affairs
Telephone: +358 40 043 7515
Email: tommi.manninen@enersense.com

DISTRIBUTION 
Nasdaq Helsinki 
Major media 
www.enersense.fi

Important notice

This release is not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any part of the share issue in the United States or to conduct a public offering of securities in the United States.

The distribution of this release may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. The information contained herein is not for publication or distribution, in whole or in part, directly or indirectly, in or into United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or any other jurisdiction where such publication or distribution would violate applicable laws or rules or would require additional documents to be completed or registered or require any measure to be undertaken in addition to the requirements under Finnish law. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This release is not directed to, and not intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

This release does not constitute a prospectus as defined in the Prospectus Regulation and, as such, it does not constitute or form part of, and should not be construed as, an offer to sell, or a solicitation or invitation of any offer to buy, acquire or subscribe for, any securities, or an inducement to enter into investment activity in relation to any securities.  No part of this release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this release has not been independently verified, does not purport to be full or complete and may be subject to change. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The Company or any of its affiliates, advisors or representatives or any other person, shall have no liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this release or its contents or otherwise arising in connection with this release. Each person must rely on their own examination and analysis of the Company, its securities and the transactions, including the merits and risks involved.

This release includes forward-looking statements that are based on present plans, estimates, projections, and expectations and are not guarantees of future performance. They are based on certain expectations and assumptions, which, even though they seem to be reasonable at present, may turn out to be incorrect. Investors should not rely on these forward-looking statements. Numerous factors may cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied in the forward-looking statements. The Company or any of its affiliates, advisors or representatives or any other person undertakes no obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this release. Further, there can be no certainty that the transaction will be completed in the manner and time frame described in this release, or at all.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, SOUTH AFRICA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SINGAPORE OR ANY OTHER JURISDICTION WHERE THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. FOR FURTHER INFORMATION, PLEASE SEE THE “IMPORTANT NOTICE” BELOW.

Enersense International Plc (“Enersense” or “Company”) has completed the acquisition of Unified Chargers Oy announced on 20 October 2022. In the transaction, Enersense acquired the entire stock of Unified Chargers Oy. The purchase price (“Purchase Price”) of the acquisition is approximately EUR 1.2 million and it will be adjusted as agreed in the purchase agreement (“Purchase Agreement”) according to the so-called locked box method.

The revenue of Unified Chargers Oy for the financial year that ended on 31 January 2022 was EUR 0.4 million and loss for the period was EUR -0.4 million. Its balance sheet total on 31 January 2022 was EUR 0.9 million.

For the payment of the Purchase Price, in connection with the closing of the transaction, Enersense issued, in a directed share issue (“Share Issue”), a total of 199,174 new Enersense  shares (“Consideration Shares”) in a share exchange for subscription by the shareholders (“Sellers”) of Unified Chargers Oy. The Sellers have subscribed for the issued Consideration Shares offered for subscription in the Share Issue in full, and the Board of Directors of Enersense has accepted the Sellers’ share subscriptions.

The Share Issues were carried out by the decision of the Board of Directors of Enersense in deviation from the shareholders’ pre-emptive subscription right under the authorisation given by the Extraordinary General Meeting of Enersense on 10 November 2022. The Consideration Shares issued in the Share Issue were issued in order to develop the group’s business and finance the corporate transaction, so there is a weighty financial reason for the Share Issue and the deviation from the pre-emptive right of the shareholders within the meaning of the Finnish Limited Liability Companies Act.

The value of a Consideration Share in the Share Issue was approximately EUR 6.05 per share and the total subscription price of the Consideration Shares EUR 1,205,000. According to the terms and conditions of the Purchase Agreement, the value of a Consideration Share corresponds to the trade volume weighted average price of the Company’s share on Nasdaq Helsinki Ltd during a period of three (3) weeks following the date of signing of the Purchase Agreement, that is, for the period from 21 October to 10 November 2022. The number of shares allocated to a single Seller as payment for the Purchase Price is calculated to one decimal place and rounded to the lowest total number of shares.

According to the terms of the lock-up agreements (“Lock-up Agreement”) concerning the Consideration Shares concluded by Enersense and the Sellers in connection with the closing of the transaction, a total of 67 percent of the Consideration Shares subscribed for by each Seller in the Share Issue are subject to so-called lock-up sales restrictions (“Lock-up”). The Lock-up is lifted in stages within 24 months, as agreed in the Lock-up Agreement.

After the new shares subscribed for in the Share Issue have been registered in the Trade Register, the total number of Enersense shares will be 16,492,531 shares. The number of Consideration Shares directed for subscription corresponds to approximately 1.2 percent of Enersense’s stock after the registration of the Consideration Shares. The Consideration Shares will entitle to full dividends possibly distributed by Enersense and to other distribution of assets as well as carry other shareholder rights in the company starting from when the Consideration Shares have been entered in the Trade Register and the shareholders’ register of the Company.  Enersense will be requesting admission to public trading of the new shares on the official list of Nasdaq Helsinki Ltd as the same type of shares as Enersense’s current shares, after they have been registered in the Trade Register.

Enersense International Plc
Board of Directors

Further information:

Jussi Holopainen, CEO
Tel: +358 44 517 4543
Email: jussi.holopainen@enersense.com

Media contacts:

Tommi Manninen, Communications and Public Affairs
Tel: +358 40 043 7515
Email: tommi.manninen@enersense.com

Important notice

This release is not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any part of the share issue in the United States or to conduct a public offering of securities in the United States.

The distribution of this release may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. The information contained herein is not for publication or distribution, in whole or in part, directly or indirectly, in or into United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or any other jurisdiction where such publication or distribution would violate applicable laws or rules or would require additional documents to be completed or registered or require any measure to be undertaken in addition to the requirements under Finnish law. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This release is not directed to, and not intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

This release does not constitute a prospectus as defined in the Prospectus Regulation and, as such, it does not constitute or form part of, and should not be construed as, an offer to sell, or a solicitation or invitation of any offer to buy, acquire or subscribe for, any securities, or an inducement to enter into investment activity in relation to any securities.  No part of this release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this release has not been independently verified, does not purport to be full or complete and may be subject to change. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The Company or any of its affiliates, advisors or representatives or any other person, shall have no liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this release or its contents or otherwise arising in connection with this release. Each person must rely on their own examination and analysis of the Company and its securities, including the merits and risks involved.

This release includes forward-looking statements that are based on present plans, estimates, projections, and expectations and are not guarantees of future performance. They are based on certain expectations and assumptions, which, even though they seem to be reasonable at present, may turn out to be incorrect. Investors should not rely on these forward-looking statements. Numerous factors may cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied in the forward-looking statements. The Company or any of its affiliates, advisors or representatives or any other person undertakes no obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this release.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, SOUTH AFRICA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SINGAPORE OR ANY OTHER JURISDICTION WHERE THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. FOR FURTHER INFORMATION, PLEASE SEE THE “IMPORTANT NOTICE” BELOW.

Enersense International Plc (“Enersense” or “the Company”) and MBÅ Invest Oy (“MBÅ Invest”) announce that their respective Boards of Directors have today signed a combination agreement (“Combination Agreement”) and a merger plan (“Merger Plan”) on the basis of which Enersense’s second largest shareholder MBÅ Invest will merge with Enersense (“Merger”). The merger is expected to take place on 1 April 2023 (“Merger’s Effective Date”).

The purpose of the Merger is to increase the transparency and equality of the ownership and governance, and simplify the ownership structure of Enersense. The transaction will bring MBÅ Invest’s holding better to the fore and make the executives’ true ownership in the Company transparent. The transaction will also increase the management’s commitment through long-term transfer restrictions on shares. The elimination of indirect ownership is also aimed at improving the liquidity of Enersense shares.

MBÅ Invest’s owners include Enersense executives and investors external to the Company, and it currently has a holding of 2,253,072 Enersense shares, corresponding to approximately 13.83 per cent of Enersense’s share capital. The Merger will have no impact on the net amount of Enersense’s shares, which will remain unchanged.

The transaction costs will be borne by MBÅ Invest Oy, and the transaction will not entail any costs or additional liabilities to Enersense. MBÅ Invest has no employees, and it is not engaged in other business than the management of its Enersense shares.

Transaction highlights

• The proposed Merger will be implemented as an absorption merger whereby the shareholders of MBÅ Invest will receive as merger consideration new shares issued by Enersense in proportion to their existing shareholding. The merger consideration will be paid in full through the new shares issued by Enersense, and their total number will be equal to the number of shares owned by MBÅ Invest on the Effective Date.
• The new Enersense shares issued as merger consideration will be listed on Nasdaq Helsinki Ltd after the completion of the Merger. The Company’s shares that will be transferred to Enersense upon the completion of the Merger will be cancelled and removed from the Trade Register and delisted following the completion of the Merger.
• The parties have agreed that MBÅ Invest and its shareholders will bear, in addition to their own costs and expenses, also the transaction-related costs and expenses of Enersense, not including Enersense’s internal HR expenses.
• In the Combination Agreement, the shareholders of MBÅ Invest have undertaken to vote, give their consent and perform any other necessary measures required to implement the Merger.
• The transaction is conditional upon the resolution of the Extraordinary General Meeting to be convened later on and upon certain other conditions described below under ‘Overview of Merger Terms and Conditions’. The implementation of the Merger is subject to its approval by a majority of two thirds of votes cast and shares represented at the respective Extraordinary General Meetings of Enersense and MBÅ Invest.
• The shareholders of MBÅ Invest are committed to the restrictions on transferal described in more detail in the Combination Agreement that apply to the shares issued as Merger Consideration for 12–24 months after the listing of the shares, as separately agreed.
• The Boards of Directors of Enersense and MBÅ Invest unanimously recommend the combination to their respective shareholders.
• If implemented, the Merger will have no impact on Enersense’s financial outlook.

Operation of the merging companies before the completion of the Merger

As of the date of the Merger Plan, both Enersense and MBÅ Invest will continue to conduct their business in accordance with their previous practices, however taking into account what has been separately agreed in the Merger Plan.

Enersense is entirely free, to the extent permitted by applicable law, to decide on its business and any details related thereto.

Among other things, MBÅ Invest:

• may sell a maximum of 150,000 Enersense shares under its ownership, as agreed in the Merger Plan, before the completion of the Merger;
• may not, in addition to selling the above-mentioned 150,000 Enersense shares, sell, swap or otherwise transfer the right of use to its assets or grant a right of use thereto except for at market terms in the ordinary course of MBÅ Invest’s business;
• may not take out or grant a loan or commit to a guarantee or any other financial liability or give any other security;
• may not decide to pay dividends or undertake any other distribution of funds, except for the 200,000 euro dividend payable for the financial year 2021;
• may not change its Articles of Association, and there may not be changes in its ownership
• shall pay all its debts and liabilities before the Merger’s Effective Date (both matured and unmatured) or must have sufficient funds for the payment of the debts and liabilities specified above.

Overview of Merger terms and conditions

The proposed Merger of Enersense and MBÅ Invest will be implemented through an absorption merger as referred to in the Finnish Limited Liability Companies Act, whereby all the assets, rights and liabilities of MBÅ Invest will be transferred without liquidation proceedings to Enersense. As a result of the completion of the Merger, MBÅ Invest will automatically dissolve.

The total number of new shares issued to the shareholders of MBÅ Invest as Merger Consideration will be adjusted to match the total number of Enersense shares owned by MBÅ Invest on the Merger’s Effective Date (the “Total Amount of Merger Consideration”) however such that the number of new Enersense shares issued as Merger Consideration may be a maximum of 2,253,072, which equals the number of Enersense shares owned by MBÅ Invest on the date of the signing of the Merger Plan.

The distribution of the Total Amount of Merger Consideration among MBÅ Invest’s shareholders is based on MBÅ Invest’s ownership interest at the end of the day preceding the Merger’s Effective Date. As merger consideration, MBÅ Invest’s shareholders will receive, of the Total Amount of Merger Consideration, an amount of Enersense’s new shares that corresponds to the shareholder’s ownership interest in MBÅ Invest at the end of the day preceding the Merger’s Effective Date (“Merger Consideration”). If the number of Company shares received by MBÅ Invest’s shareholder as Merger Consideration (for each book-entry account) is a fraction, the number of new shares to be given as Merger Consideration will be rounded down to the nearest whole share.

If the Merger is completed, Enersense will void all Enersense shares transferred to its ownership in connection with the Merger.

Furthermore, the parties have agreed in the Merger Plan that MBÅ Invest and its shareholders will bear, in addition to their own costs and expenses, also the transaction-related costs and expenses of Enersense, not including Enersense’s internal HR expenses.

The proportion of MBÅ Invest’s largest shareholders (Suotuuli Oy, ProUp Oy, PM Ruukki Oy and Jussi Holopainen) of the new shares issued by Enersense as Merger Consideration totals approximately 75.31 per cent.

In connection with the Merger, all MBÅ Invest’s shareholders commit to restrictions on transferal concerning Enersense’s new shares that they receive in the Merger, as specified in the provisions of the Combination Agreement. The transferal restrictions apply to a total of 100 per cent of the shares received by MBÅ Invest’s shareholders as Merger Consideration for a period of 12 months from the listing of the shares, with the following exceptions:

1. Each MBÅ Invest shareholder has the right to sell or otherwise transfer, without limitations, a maximum of 50,000 shares;
2. MBÅ Invest’s shareholders, except for Jussi Holopainen, Jaakko Leivo and Suotuuli Oy, have the right to sell or otherwise transfer their shares received as Merger Consideration without time limits as a so-called block trade provided that the block trade carried out by the shareholder involves at least 120,000 shares;
3. Jussi Holopainen, Jaakko Leivo and Suotuuli Oy may, for the part that exceeds the amount specified under item (i), without limitations sell or otherwise transfer 50% of the shares they received as Merger Consideration after a period of twelve (12) months and the remaining 50% of the shares after a period of twenty-four (24) months from the listing of the shares.

Conditions for the Merger and timetable

The Merger is subject to conditions including:

• the Extraordinary General Meetings of Enersense and MBÅ Invest, which are to be convened later on, approve the Merger by a majority of two thirds of votes cast and shares represented. The Extraordinary General Meetings are expected to take place in November 2022.
• Enersense’s financing partners approve the Merger.

If the conditions are met, the Merger is expected to be completed by 1 April 2023. The intention is to apply for the listing of the new Enersense shares issued as Merger Consideration on Nasdaq Helsinki Ltd after the completion of the Merger no later than 31 May 2023.

The Merger Plan is included as an annex to this stock exchange release and contains information, inter alia, on the Merger Consideration to MBÅ Invest Oy’s shareholders, the planned timetable for completion of the Merger and the conditions for the completion of the statutory Merger. 

MBÅ Invest in brief

MBÅ Invest is a holding company that was founded in 2020. The company is focused on managing the Enersense shares it owns, and it is not engaged in other business. In February 2020, MBÅ Invest purchased 2,753,072 Enersense shares from the main shareholder at that time, Corporatum Oy. MBÅ Invest’s holding in Enersense has been 46.29 per cent at its highest (April 2020–July 2020), while currently it is 13.83 per cent.

MBÅ Invest has no employees.

At the time of signing the Merger Plan, two of MBÅ Invest’s eleven shareholders work in management positions at Enersense (Jussi Holopainen and Jaakko Leivo) and one shareholder acts as a member of Enersense’s Board of Directors (Petri Suokas, Suotuuli Oy).

If the Merger is completed, the four largest MBÅ Invest shareholders (Suotuuli Oy, ProUp Oy, PM Ruukki Oy and Jussi Holopainen), who own a total of 75.31 per cent of MBÅ Invest’s shares, would, after the completion of the Merger, hold Enersense shares as presented in the table below. The holdings presented in the table have been calculated on the presumption that Company shares received by Enersense in connection with the Merger have been cancelled, 2,253,072 new Enersense shares have been issued as Merger Consideration and the total number of Enersense’s shares is 16,293,357:

Shareholder’s name	Holding in MBÅ Invest	Expected holding in the Company
Suotuuli Oy (Petri Suokas)	31.25%	4.32%
ProUp Oy	18.75%	2.59%
PM Ruukki Oy	12.81%	1.77%
Jussi Holopainen	12.50%	1.72%

Combination Agreement

On 23 September 2022, Enersense and MBÅ Invest and its shareholders have signed a Combination Agreement, in accordance with which Enersense and MBÅ Invest will merge their businesses through an absorption merger as referred to in the Limited Liability Companies Act.

The Combination Agreement contains certain customary representations and warranties as well as undertakings, such as MBÅ Invest conducting its business in the ordinary course of business until the completion of the merger, keeping the other party informed of any and all matters that may be of material relevance for the purposes of effecting the completion of the Merger, and cooperating with the other party with the purpose of implementing the Merger.

Moreover, MBÅ Invest and its shareholders have given Enersense certain customary representations and warranties related to, inter alia, authority to enter into the Combination Agreement, due incorporation, status of the shares in the respective company, preparation of financial statements and interim reports, compliance with applicable licenses, laws and agreements, legal proceedings, ownership of the company’s assets, taxes and the due diligence materials provided to Enersense. Furthermore, the shareholders of MBÅ Invest have agreed not to sell, mortgage or otherwise transfer MBÅ Invest’s shares that they own before the completion of the Merger.

The parties will bear their own fees, costs and expenses incurred in connection with the Merger, with the exception of certain costs incurred by Enersense that MBÅ Invest will bear.

The Combination Agreement may be terminated by mutual decision of the Boards of Directors of Enersense and MBÅ Invest. Furthermore, MBÅ and Enersense may terminate the Combination Agreement (i) if the Merger has not been completed by 31 May 2023 (or at a later date agreed by the Parties) or (ii) if the Boards of Directors or EGMs of MBÅ and Enersense do not approve the Merger or other decisions related to the Merger. Enersense also has the right to terminate the agreement if MBÅ’s shareholders violate certain representations, warranties and undertakings under the Combination Agreement.

Related-party transaction

The Merger constitutes a related-party transaction for Enersense since MBÅ Invest is Enersense’s related party that exercises significant influence. Furthermore, Enersense’s Board Member Petri Suokas, President and CEO Jussi Holopainen and Executive Team Member Jaakko Leivo are MBÅ Invest’s shareholders. Petri Suokas and Jussi Holopainen are also members of the Board of Directors of MBÅ Invest. According to the assessment by Enersense’s Board of Directors, the related-party transaction is in the best interest of the Company, and it will be conducted under customary commercial terms. Petri Suokas, Jussi Holopainen and Jaakko Leivo have not participated in the discussion concerning the Merger or in the decision-making of Enersense’s Board of Directors. The related-party transaction is supported by all members of the Board of Directors of Enersense who are not in a related party relationship with MBÅ Invest or the matter to be resolved.

Enersense International Plc

BOARD OF DIRECTORS

Further information:

Jaakko Eskola, Chair of the Board

Contacts:

Tommi Manninen, Senior Vice President, Communications and Public Affairs
Phone: +358 40 043 7515
E-mail: tommi.manninen@enersense.com

Distribution:

Nasdaq Helsinki
Major media
www.enersense.com

Important Notice

This release is not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any part of the share issue in the United States or to conduct a public offering of securities in the United States.

The distribution of this release may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. The information contained herein is not for publication or distribution, in whole or in part, directly or indirectly, in or into United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or any other jurisdiction where such publication or distribution would violate applicable laws or rules or would require additional documents to be completed or registered or require any measure to be undertaken in addition to the requirements under Finnish law. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This release is not directed to, and is not intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

This release does not constitute a prospectus as defined in the Prospectus Regulation and, as such, it does not constitute or form part of, and should not be construed as, an offer to sell, or a solicitation or invitation of any offer to buy, acquire or subscribe for, any securities or an inducement to enter into investment activity in relation to any securities. No part of this release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this release has not been independently verified, does not purport to be full or complete and may be subject to change. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The Company or any of its affiliates, advisors or representatives or any other person, shall have no liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this release or its contents or otherwise arising in connection with this release. Each person must rely on their own examination and analysis of the Company, its securities and the transactions, including the merits and risks involved.

This release includes forward-looking statements that are based on present plans, estimates, projections, and expectations and are not guarantees of future performance. They are based on certain expectations and assumptions, which, even though they seem to be reasonable at present, may turn out to be incorrect. Investors should not rely on these forward-looking statements. Numerous factors may cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied in the forward-looking statements. The Company or any of its affiliates, advisors or representatives or any other person undertakes no obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this release. Further, there can be no certainty that the transaction will be completed in the manner and timeframe described in this release, or at all.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. FOR FURTHER INFORMATION, PLEASE SEE THE “IMPORTANT NOTICE” BELOW. 

Enersense International Plc, a provider of zero-emission energy solutions, has signed an agreement (“Contract of Sale”) on acquiring the entire share capital of Voimatel Oy, a company specialising in critical infrastructure and energy services, with a share exchange (“Share Transaction”). The total purchase price (“Purchase Price”) to be paid in the Share Transaction to Voimatel’s current owner KPY Co-operative is EUR 9.0 million The Purchase Price will be paid in full by means of new Enersense shares to be issued in connection with the execution of the Share Transaction, which will be directed to Voimatel Oy’s owner KPY Co-operative to subscribe for. The completion of the acquisition is subject to the approval of the Finnish Competition and Consumer Authority as well as the fulfilment of the customary terms and conditions of the Share Transaction. In addition, KPY Co-operative has made an additional investment of EUR 2.2 million in Enersense in connection with signing the Contract of Sale. 

The Finnish company Voimatel Oy’s business is based on the design and implementation of critical infrastructure, information, distribution, and transmission network services, as well as energy services such as solar energy, electric transport, optimisation of energy use, and energy storage services. Voimatel has three subsidiaries: OptiWatti and Datasilta in Finland and Boftel in Estonia. 

The new entity would have a turnover of approximately EUR 370 million and the Group would employ about 3,000 people. Subject to the completion of the acquisition, Voimatel’s data network business will be reported as part of Enersense’s Connectivity segment and electrical network business as part of Power segment. Connectivity segment is involved in all phases of the lifecycles of data networks and following the corporate transaction it will strengthen its position in telecommunications networks. Power segment is a key player in implementing energy transition with comprehensive services in electricity transmission and distribution as well as renewable energy projects. 

Jussi Holopainen, President and CEO, Enersense International Plc: 

“In line with Enersense’s growth strategy, we are seeking growth both organically and through acquisitions. With the acquisition of Voimatel, we will have additional skilled personnel, which enables the Group to continue to grow and develop. As a result of the acquisition, we achieve synergy gain due to the similarity between Enersense’s and Voimatel’s businesses. When we combine our expertise, we are able to operate more efficiently, improve our profitability and respond to competition. In the future, Enersense will be more able than before to advance data and energy network solutions as well as strongly growing energy services such as solar power and electric transport services.” 

Juha Silvola, Executive Vice President, Enersense International Plc: 

“The acquisition of Voimatel complements and further expands Enersense’s diverse range of services as a provider of zero-emission energy solutions. Functional data and energy networks play a key role in society, and the corporate transaction strengthens Enersense’s position as a key constructor and operator of critical network infrastructure. The creation, development and maintenance of critical communications and network infrastructure is key to the functionality and security of supply throughout Finland now and in the future. With the corporate transaction, Enersense will also receive considerable input for smart network solutions and optimisation of energy use. 

Voimatel in brief: 

Voimatel group’s revenue in 2021 was EUR 133.1 million (EUR 140.8 million in 2020), while the group’s EBITDA in 2021 was EUR 4.0 million (EUR 6.3 million in 2020) and balance sheet in 2021 was EUR 50.7 million (EUR 62.7 million in 2020). Voimatel’s financial statement follows the Finnish Accounting Standards (FAS). The group employs around 1,000 employees. 

Share Transaction in brief: 

Subject to the completion of the Share Transaction, Enersense will pay EUR 9.0 million as the Purchase Price for Voimatel’s share capital to Voimatel’s current owner KPY Co-operative. The Purchase Price will be paid in full by means of new Enersense shares to be issued in connection with the execution of the Share Transaction, which will be directed to Voimatel Oy’s owner KPY Co-operative to subscribe for. Voimatel’s net debt in the financial statement of 2021 amounted to EUR 1.1 million according to the Finnish Accounting Standards (FAS). In accordance with the terms of the Contract of Sale, Enersense will receive Voimatel’s cumulative cash flow from 1 January 2022 until the completion of the Share Transaction (the so-called locked box mechanism).  

The subscription price of the new Enersense shares to be paid for the Purchase Price has been agreed at EUR 7.4 per share in the Contract of Sale, corresponding to the volume-weighted average price of the Enersense share on Nasdaq Helsinki Oy’s stock market listing for [20] trading days before the Contract of Sale signature date plus a premium of about three per cent. In the Share Transaction, the maximum number of new shares is limited to 1,216,216 as payment of the Purchase Price. 

Directed share issue to KPY Co-operative: 

In addition, in a directed share issue held in connection with the signing of the Contract of Sale, the Board of Directors of Enersense decided to issue a total of 297,297 new shares under the authorisation of the Annual General Meeting on 4 April 2022, in deviation from the shareholders’ prerogative, for the subscription of KPY Co-operative. The subscription price of the new Enersense shares to be issued in the directed share issue is EUR 7.4 per share, which corresponds to the volume-weighted average price of the Enersense share on Nasdaq Helsinki Oy’s stock market listing for [20] trading days before the closing day of the share issue plus a premium of about three per cent. The total subscription price of the shares will be recorded in full in Enersense’s invested free capital fund and there will be no changes to Enersense’s share capital. 

After the new shares subscribed in the directed share issue have been registered with the Trade Register, the total number of shares in Enersense will be 16,293,357. The number of new shares subscribed in the directed share issue represents approximately 1.8 per cent of Enersense’s share capital after the registration of the new shares. The shares entitle Enersense to potentially distribute a full dividend and other distribution of funds, as well as producing other shareholder rights in the company from the time the shares have been entered in the Trade Register and the company’s shareholder register. Enersense will apply for the admission of new shares to public trading on Nasdaq Helsinki Oy’s stock exchange listing at the same type as Enersense’s existing shares after they are registered with the Trade Register. 

Other: 

The completion of the Share Transaction is subject to the approval of the Finnish Competition and Consumer Authority and the fulfilment of the customary terms and conditions of the Share Transaction. If the Finnish Competition and Consumer Authority issues its decision after the first stage of the acquisition notification, Enersense estimates it to take place in the final quarter of 2022. If the Finnish Competition and Consumer Authority decides to transfer the acquisition notification for further processing (the so-called second stage processing), the company estimates the decision of the Finnish Competition and Consumer Authority regarding the acquisition to take place in the first quarter of 2023. 

Subject to the completion of the acquisition, the transaction will have a financial impact on Enersense. At this stage, Enersense will keep its 2022 guidance unchanged until the schedule for the completion of the transaction is confirmed. 

Important notice 

This release is not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any part of the share issue in the United States or to conduct a public offering of securities in the United States. 

The distribution of this release may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. The information contained herein is not for publication or distribution, in whole or in part, directly or indirectly, in or into United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or any other jurisdiction where such publication or distribution would violate applicable laws or rules or would require additional documents to be completed or registered or require any measure to be undertaken in addition to the requirements under Finnish law. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This release is not directed to, and is not intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. 

This release does not constitute a prospectus as defined in the Prospectus Regulation and, as such, it does not constitute or form part of, and should not be construed as, an offer to sell, or a solicitation or invitation of any offer to buy, acquire or subscribe for, any securities or an inducement to enter into investment activity in relation to any securities. No part of this release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this release has not been independently verified, does not purport to be full or complete and may be subject to change. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The Company or any of its affiliates, advisors or representatives or any other person, shall have no liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this release or its contents or otherwise arising in connection with this release. Each person must rely on their own examination and analysis of the Company, its securities and the transactions, including the merits and risks involved. 

This release includes forward-looking statements that are based on present plans, estimates, projections and expectations and are not guarantees of future performance. They are based on certain expectations and assumptions, which, even though they seem to be reasonable at present, may turn out to be incorrect. Investors should not rely on these forward-looking statements. Numerous factors may cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied in the forward-looking statements. The Company or any of its affiliates, advisors or representatives or any other person undertakes no obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this release. Further, there can be no certainty that the transaction will be completed in the manner and timeframe described in this release, or at all. 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. FOR FURTHER INFORMATION, PLEASE SEE THE “IMPORTANT NOTICE” BELOW.

Enersense International Plc (“Enersense”), a provider of zero-emission energy solutions, has signed an agreement on acquiring Megatuuli Oy (“Megatuuli”), an onshore wind farm developer company. The total purchase price to be paid in the share transaction (“Share Transaction”) is EUR 18.5 million. The purchase price will be paid in full by means of new Enersense shares to be issued.

With the acquisition of Megatuuli, Enersense will continue to expand its role in the value chain for renewable energy production projects. Upon completion of the Share Transaction, Enersense will become a developer of onshore wind power projects. Megatuuli and its partners have projects in progress or in the feasibility study phase in different parts of Finland, with a total capacity of around 3,000 MW.

Jussi Holopainen, CEO, Enersense International Plc:

“Megatuuli complements and supports Enersense’s strong selection of services, making us a more broad-based partner for implementing zero-emission energy solutions. Upon completion of the Share Transaction, we will begin to develop wind farms in cooperation with Megatuuli’s partners and will participate in their construction and possibly in their contracting. We will also seek to partly serve as owners of wind farms and produce zero-emission energy. Fingrid forecasts that the production of onshore wind power will grow in Finland from around 2,000 MW in 2020 to more than 14,000 MW by 2030. Megatuuli’s and its partners’ project development portfolio corresponds to approximately 20 per cent of the amount of wind power capacity in Finland in 2030 as estimated by Fingrid. Megatuuli aims to develop and build 1,000 MW of wind power by 2025 in cooperation with its project development partners. If completed, the Share Transaction will enable utilisation of Megatuuli’s expertise on project development also on offshore wind power projects.”

The number of new Enersense shares to be issued to the sellers as consideration will be determined five business days before the completion of the Share Transaction based on the 25-day volume-weighted average price of the Enersense share on the Nasdaq Helsinki. The maximum number of new shares is limited to 2,675,000 shares (19.9 per cent of the current number of shares in Enersense). If the maximum number of shares is not sufficient to cover the full amount of the purchase price, the sellers are entitled to require that the difference be settled in cash.

The Share Transaction is conditional on, among other things:

-the Extraordinary General Meeting of Enersense, convened to be held on 11 January 2022, deciding to change the Articles of Association of Enersense and authorising Enersense’s Board of Directors to decide on a directed share issue related to the Share Transaction and related security arrangement;

-certain of Megatuuli’s project development partners issuing a waiver in relation to the change of control terms included in the agreements between Megatuuli and these parties in connection with the Share Transaction, as well as on renegotiating the duration and certain terms and conditions of the cooperation agreement with Megatuuli’s key project development partner;

– Megatuuli’s Articles of Association being amended to create a series of non-voting shares and Enersense and the current shareholders of Megatuuli having negotiated a shareholder agreement concerning Megatuuli; and

– certain other customary terms and preconditions.

The transaction is expected to be completed, subject to the fulfilment of the conditions precedent, during January 2022.

The new Enersense shares given as consideration to the sellers are subject to a lock-up restriction and security arrangement. The new shares in Enersense will be submitted for trading approval on the Nasdaq Helsinki after the Share Transaction is completed.

If the Share Transaction is completed, the current shareholders of Megatuuli will remain the owners of Megatuuli’s new series of non-voting shares. The series of non-voting shares will entitle these shareholders to dividends based on the sales revenues of certain future projects. These non-voting shares in Megatuuli will not entitle their holders to other distribution of profit, nor will they, subject to certain exceptions, provide their holders with other rights related to Megatuuli.

Subject to the completion of the Share Transaction, Enersense’s business operations in the wind power sector will expand from wind farm design and construction services to also cover onshore wind power project development carried out by Megatuuli in cooperation with its partners.  Value chain expansion is expected to even out the profitability and cash flow risks arising from cyclicality and fluctuations in demand in project construction in Enersense’s current business operations. In addition, participation in wind power development is expected to provide Enersense with an advantage in construction and maintenance services related to wind farms.

Project development operations are very long-term by nature, and their most typical risks and uncertainties include the approvability of projects, as well as complaints related to statutory land use planning processes and permit procedures in particular, which may delay or prevent the implementation of development projects. Megatuuli’s operations also focus on early-stage development work in wind power projects, and the implementation of development projects depends on certain key partners and the continuity of contracts with these partners, which requires, for example, that Megatuuli is able to comply with the obligations included in such contracts.

Megatuuli in brief

Established in 2010, Megatuuli is a Finnish developer of onshore wind power projects. Its operations focus on early-stage development work in wind power projects. Megatuuli develops onshore wind power projects in cooperation with its partners. Megatuuli and its partners have projects in progress or in the feasibility study phase in different parts of Finland, with a total capacity of around 3,000 MW. Seven wind power projects have been developed and built or are under construction by Megatuuli and its partners, consisting of 41 wind power plants. The total investment value of these projects is around EUR 250 million. Tyrinselkä, the first project that progressed to the construction phase, has been producing wind power since 2016 and was after its commissioning the wind farm with the best capacity factor.

Megatuuli’s turnover for the financial year that ended in 2021 (1 April 2020 to 31 March 2021) was EUR 0.5 million (EUR 0.5 million for the financial year that ended in 2020). The company’s EBITDA was around EUR 3.5 million in the financial year that ended in 2021 (EUR 0.2 million in the financial year that ended in 2020), and its balance sheet stood at around EUR 0.7 million at the close of the financial year that ended in 2021 (EUR 1.1 million in 2020). The company has nine employees.

Terms and conditions of the Share Transaction in brief

Subject to the completion of the Share Transaction, Enersense will pay EUR 18.5 million as the purchase price to Megatuuli’s current owners. The purchase price will be paid in full in new shares in Enersense by means of a share issue against payment directed to Megatuuli’s current shareholders (“Directed Share Issue”).

The number of new shares to be issued through the Directed Share Issue will be determined five business days before the completion of the Share Transaction based on the 25-day volume-weighted average price of the Enersense share on the Nasdaq Helsinki (the period beginning 30 days before the completion of the Share Transaction and ending 5 days before the completion of the Share Transaction). The transaction is expected to be completed during January 2022. The total number of new shares to be issued through the Directed Share Issue is always limited to a maximum of 2,675,000 shares (19.9% of the current number of shares in Enersense), meaning that the total number of shares in Enersense will increase to a maximum of 16,072,729 shares if the Directed Share Issue is completed. If the maximum number of shares is not sufficient to cover the full amount of the purchase price, the sellers are entitled to require that the difference be settled in cash.

Subject to the completion of the Share Transaction, the current shareholders of Megatuuli will own the shares in a new series of non-voting Megatuuli shares to be established. The non-voting shares will entitle their holders to dividends based on sales revenues from certain wind farms under development by Megatuuli and its partners. These minority shareholders will have no other rights to Megatuuli’s distribution of profit, nor will they have, subject to certain exceptions, any other rights related to Megatuuli. If the Share Transaction is completed, Enersense and the current shareholders of Megatuuli will enter into a shareholder agreement concerning Megatuuli, and the Articles of Association of Megatuuli will be amended to create the new share series. The current shareholders’ holding in Megatuuli will expire once Megatuuli has paid them the agreed dividends based on revenues from wind farms under development.

The Share Transaction is conditional on the Extraordinary General Meeting of Enersense, convened to be held on 11 January 2022, deciding to change the Articles of Association of Enersense and authorising Enersense’s Board of Directors to decide on a directed share issue concerning the issue of shares to be given as the consideration, as well as granting the authorisations related to the security arrangement included in the Share Transaction. The notice of the Extraordinary General Meeting will be published by means of a separate stock exchange release and on the Enersense website at www.enersense.com/investors. 

The Share Transaction is also conditional on certain of Megatuuli’s project development partners waiving their rights to the change of control terms included in the agreements between Megatuuli and these parties in connection with the Share Transaction, as well as on renegotiating the duration and certain terms and conditions of the cooperation agreement with Megatuuli’s key project development partner. The negotiations on the aforesaid contract amendments have been initiated between Megatuuli, Enersense and the said project development partner. In addition, the Share Transaction is conditional on amending the Articles of Association of Megatuuli to create a new series of non-voting shares for minority shareholders and on negotiating the related shareholder agreement, as well as on certain other customary terms and preconditions.

Subject to the completion of the Share Transaction, Megatuuli’s total of 13 owners will become new shareholders in Enersense. The total share of Megatuuli’s largest owners (LOE Invest Oy, Mapps Global Invest Oy, Blin Ab and Summer Island Oy) of the new shares given by Enersense as the consideration is around 72,57 per cent.

In connection with the Share Transaction, Megatuuli’s shareholders will agree, subject to certain terms specified in more detail in the contract of sale, to comply with the lock-up restrictions and security arrangement concerning the new shares in Enersense that they receive through the Directed Share Issue. The lock-up and security restrictions will concern 50% of the shares provided as consideration to Megatuuli’s shareholders, and the restriction will be lifted 24 months after the completion of the Share Transaction.

The Share Transaction, if completed, will have no impact on Enersense’s financial guidance for 2021. Subject to the completion of the Share Transaction, it is expected to improve Enersense’s financial position in 2022 and the company’s performance over the long term. The revenues from certain wind farms under development by Megatuuli which are the subject of the series of non-voting Megatuuli shares, are expected, subject to the completion of the Share Transaction, to have an EUR 20-40 million impact on Enersense’ EBIT by the year 2025. In terms of distributable net profit, Enersense’s share of the said amount is expected to be around one third and the share of the non-voting shares held by the sellers around two thirds.  The first projects are expected to provide revenues during 2022. For other projects, which are expected to provide revenues from 2024 onwards, Enersense’s share of net profit is 100 per cent.

If the Share Transaction is completed, it will have an impact on Enersense’s long-term numerical targets, which the company will update accordingly during the first quarter of 2022.  Megatuuli will, subject to completion of the Share Transaction, be reported as part of Enersense’s Power segment.

Important notice

This release is not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any part of the share issue in the United States or to conduct a public offering of securities in the United States.

The distribution of this release may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. The information contained herein is not for publication or distribution, in whole or in part, directly or indirectly, in or into United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or any other jurisdiction where such publication or distribution would violate applicable laws or rules or would require additional documents to be completed or registered or require any measure to be undertaken in addition to the requirements under Finnish law. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This release is not directed to, and is not intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

This release does not constitute a prospectus as defined in the Prospectus Regulation and, as such, it does not constitute or form part of, and should not be construed as, an offer to sell, or a solicitation or invitation of any offer to buy, acquire or subscribe for, any securities or an inducement to enter into investment activity in relation to any securities. No part of this release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this release has not been independently verified, does not purport to be full or complete and may be subject to change. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The Company or any of its affiliates, advisors or representatives or any other person, shall have no liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this release or its contents or otherwise arising in connection with this release. Each person must rely on their own examination and analysis of the Company, its securities and the transactions, including the merits and risks involved.

This release includes forward-looking statements that are based on present plans, estimates, projections and expectations and are not guarantees of future performance. They are based on certain expectations and assumptions, which, even though they seem to be reasonable at present, may turn out to be incorrect. Investors should not rely on these forward-looking statements. Numerous factors may cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied in the forward-looking statements. The Company or any of its affiliates, advisors or representatives or any other person undertakes no obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this release. Further, there can be no certainty that the transaction will be completed in the manner and timeframe described in this release, or at all.