Renewable investor ENKRAFT takes stake in Energiekontor

Energiekontor AG

04/05/2020 15:14

FRANKFURT, May 4 (Reuters) - Energy investor ENKRAFT has
taken a stake of close to 3% in German solar and wind project
developer Energiekontor  EKTG.DE , a letter seen by Reuters
showed, as activist investors continue to seek opportunities in
Europe's largest economy.
    Among the demands made by ENKRAFT are a reshuffle of
Energiekontor's supervisory board, a review of the group's
corporate strategy and a termination of share buybacks, the
letter, which was sent to Enegiekontor last week, showed.
    "We are ... convinced that Energiekontor, with its
diversified and experienced team, should be able to perform much
better in the competitive environment," ENKRAFT managing
director Benedikt Kormaier said in the letter.
    ENKRAFT, also a top-10 shareholder in wind farm developer
PNE AG  PNEGn.DE , pointed to the ongoing expansion of renewable
energy sources around the world, a trend that has continued
unabated in light of the coronavirus pandemic.
    In the letter, ENKRAFT proposes changes to the group's
3-member supervisory board, which includes Energiekontor's two
co-founders that together hold 51.53% of the company, with a
current market capitalisation of 267 million euros ($292
million).
    "The current composition of the Supervisory Board of
Energiekontor AG neither complies with the ideas and
recommendations of the German Corporate Governance Code, nor can
it meet even the most basic demands of shareholders regarding
independence and balance," ENKRAFT said.
    ENKRAFT confirmed the existence and contents of the letter.
    A spokesman for Energiekontor confirmed that a letter from
ENKRAFT has been received. "We generally welcome all new
investors and are open to hearing their concerns and wishes." 
    ENKRAFT said that if founders and management could not agree
on a new strategy and corporate governance it would have to be
considered "whether the value of the company could not be better
realised by selling the company as a whole".
($1 = 0.9143 euros)

 (Reporting by Christoph Steitz
Editing by Michelle Martin)
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269;
Reuters Messaging:
christoph.steitz.thomsonreuters.com@reuters.net))