Shares of installation and maintenance vessels for the offshore wind market provider Eneti (NYSE:NETI) are on the rise today after the company agreed to combine with Cadeler A/S.
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The combination involves a stock-for-stock exchange at a ratio of 3.409 Cadeler shares for every Eneti share with Eneti investors owning 60% of the combined entity. The combined business will be called Cadeler and the deal has received unanimous blessings from the Boards of both companies.
Importantly, the strategic move brings together two offshore wind companies and their combined fleet can now provide better cross-utilization of resources as well as increased flexibility and capacity. Moreover, this also increases the company’s capacity to tap into the worldwide burgeoning demand for projects of larger scale.
What’s more, the deal is also expected to deliver annual synergies of €106 million while creating the biggest diversified fleet under a single pure-play offshore wind turbine and foundation installation entity.
The transaction is anticipated to close in the fourth quarter of 2023 and remains subject to closing conditions.
Eneti shares have now surged nearly 53.6% over the past month while short interest in the stock currently stands at about 12.6%.
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