Orrön Energy (ORRON) M&A announcement summary

Deal rationale and strategic fit

• Combination creates a leading pan-Nordic renewable energy platform with complementary wind and hydro assets, forming the largest listed IPP focused solely on the Nordics.

• Enlarged platform offers greater diversification, long-term value creation, and accelerated growth opportunities in the Nordic energy market.

• Orrön Energy retains exposure to Nordic power markets and gains a significant shareholding in Cloudberry.

• Transaction supports Orrön Energy’s strategy to focus on European development business, greenfield projects, and the Karskruv windfarm.

Financial terms and conditions

• Orrön Energy receives a 27.01% shareholding in Cloudberry, valued at around EUR 140 million based on the last 30-day VWAP, plus MEUR 4.2 in cash.

• Cloudberry assumes or settles loan balances and accrued interest of approximately MEUR 93 and external debt of MEUR 3, reducing Orrön Energy's net debt to near zero.

• Implied enterprise value of the divested assets is EUR 234.6 million on a cash and debt free basis.

• Orrön Energy expects to have close to zero net debt at closing, supported by a committed MEUR 50 debt facility.

Synergies and expected cost savings

• Operational and strategic synergies expected from combining asset management, turbine operation, maintenance expertise, and complementary portfolios.

• Opportunities for hybridization, repowering, life extension, and ancillary services across the combined portfolio.

• Combination reduces cost per kWh and strengthens financing and trading platforms.