FTSE 250 smart meter provider Calisen (CLSN) is set to go private after accepting a £1.43 billion takeover deal, just under a year after its initial public offering (IPO) on the London market.

The firm has agreed to be bought by a consortium of infrastructure funds, which includes asset management giant Blackrock, in all cash deal with shareholders receiving 261p per share, a 50.4% premium to the three-month average price and 8.8% premium to the IPO price in February of 240p.

Calisen shares jumped almost 25% to 258p on the news.

RIVAL TO SMART METERING SYSTEMS

Calisen is a direct rival to AIM-listed Smart Metering Systems (SMS:AIM) and both have the same approach of owning and installing smart meters and collecting rent from utility providers.

But where the two companies differ is in the capacity of the installation team and customer base.

SMS has 500 in-house engineers and a training programme. In contrast, Calisen only at the start of the year acquired in-house installation capacity and has had to invest heavily to expand its installation team.

LONG-TERM OPPORTUNITIES

Outlining its rationale for the deal, the consortium said it sees a long-term opportunity to expand into adjacent energy efficiency investment opportunities including electric vehicle charging, batteries, heat pumps and water meters in the UK ‘given the increasing sustainability focus of Governments and consumers, as seen by the recent UK Green Investment Scheme.’

In addition, it thinks there’s also a longer term opportunity to expand the business internationally to other jurisdictions with similar smart metering regulatory frameworks.

The consortium said, ‘This vision requires significant investment and Bidco believes that the execution and financing of such a plan is better suited to private ownership, rather than a publicly listed environment.’

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Issue Date: 11 Dec 2020