In today’s briefing:
- Solaria: The Next Big Takeover in Spanish Renewables?
Solaria: The Next Big Takeover in Spanish Renewables?
- Solaria Energia y Medio Ambiente (SLR SM) faces stock market volatility amid takeover rumors. The controlling family reportedly won’t sell below €20/share, a 79% premium to current prices.
- After the takeover of other independent power developers, Solaria may now hold some scarcity value. Premia in comparable transactions range from 27% to 54%. Solaria trades at 11.2x fwd EBITDA.
- A 50% premium (€16.8/share, €3.1bn EV) takeover wouldn’t be irrational at 14.7x EBITDA. I believe the shares are undervalued and recommend buying SLR SM at current prices, anticipating a possible deal.
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