Repower Energy anchor investor takes over 32.5% of the IPO

Repower energy development [REDC 5.00 pre-IPO] https://news.google.com/rss/articles/CBMicWh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDYvMzAvMjI3NzY5My9yZXBvd2VyLWVuZXJneS1hbmNob3ItaW52ZXN0b3ItdGFrZS0zMjUtaXBv0gF2aHR0cHM6Ly93d3cucGhpbHN0YXIuY29tL2J1c2luZXNzL3N0b2NrLWNvbW1lbnRhcnkvMjAyMy8wNi8zMC8yMjc3NjkzL3JlcG93ZXItZW5lcmd5LWFuY2hvci1pbnZlc3Rvci10YWtlLTMyNS1pcG8vYW1wLw?oc=5 revealed it was the Japanese anchor investor she was teasing TOKAI Holdings Corporation (TOKAI) and that it will acquire 32.5% of REDC’s 200 million share offering (65 million shares), expected at IPO price, for an estimated transaction value of 325 million pesetas.

TOKAI will also receive an observer seat on the REDC Board. According to the press release, TOKAI is a Japan-based publicly traded corporation with interests in “gas, solar energy and real estate”.

REDC said it is keen to leverage the “synergies” the deal brings, such as developing run-of-river power plants in Japan using REDC’s expertise and TOKAI’s nationwide “reach.” REDC’s IPO offering period begins today and will run through July 14, with an IPO listing on July 24.

MB bottom line

This means that TOKAI will hold almost 10% of the shares in REDC after the IPO. For those unfamiliar, an “observer seat” on the board allows a TOKAI representative to attend all top-level meetings of the REDC. A board observer may not vote, but their presence and presence in the room provides a level of information and influence that would otherwise not be possible without this important concession.

That the observer seat was part of the deal tells me that TOKAI might take a ride to get a taste of how REDC works and that the company could increase its strategic investments at some point in the future, maybe depending on how well Things are underway as plans for what the two companies will do together in Japan take shape. However, this is only my opinion!

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