Home » ERG sprinting between the mid caps of Piazza Affari, two assists in one from the takeover bid on Flack Renewables

ERG sprinting between the mid caps of Piazza Affari, two assists in one from the takeover bid on Flack Renewables

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Positive day today for the renewables sector of Piazza Affari in the wake of the takeover bid launched on Falck Renewables by the IIF fund at a 29% premium compared to the average price of the stock in the last 3 months. Among the best stocks, Erg stands out (+ 5% to € 29.48). According to Equita SIM, the takeover bid on Falck Renewables is increasing, meaning that the appetite for renewable companies is still very strong, with significant M&A rewards. The target indicated by Equita for ERG at € 31.5 currently includes a premium M&A of around 15% on existing assets only. “Assuming a premium similar to the multiples paid in this transaction, the valuation could reach 35 euros,” says Equita. Secondly, in the event of the de-listing of Falck Renewables, Erg can benefit from the reinvestment flow of Falck’s liquidity positions, as well as from a greater repositioning in the ESG reference indices.

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