Letter of intent approved

The shareholders of both Glitre Energi and Agder Energi have now given their approval to the letter of intent, which means the companies can continue with their negotiations on a potential merger.

"We are grateful to our shareholders for placing their trust in us, and we are pleased that we can now continue to negotiate a good merger agreement. We believe that a merger will benefit society, our customers, our employees and our shareholders. Now we will do our utmost to reach a good, balanced solution that satisfies the needs of all of the parties involved”, says Ann-Christin Andersen, the Chair of Glitre Energi.

In February the companies announced that the boards of Glitre Energi and Agder Energi had unanimously agreed to sign a letter of intent regarding a merger between the two companies. The recommendation was clear: Glitre Energi and Agder Energi are stronger together than individually, and they should merge in order to increase their capacity and expertise in the face of the green transition.

“A lot of things are happening in the energy industry and as part of the green transition, and we should grasp the opportunities that arise. Both Glitre Energi and Agder Energi are local powerhouses in terms of creating value and jobs in our regions. Together we will be able to add even more value and, equally importantly, jobs in the regions where we operate”, says Lars Erik Torjussen, the Chair of Agder Energi.

The employee organisations at both companies also support the merger process.

Shareholder review

The shareholders have been reviewing the letter of intent since March, and all of the shareholder groups have now given it their support. On Tuesday, the letter of intent received the backing of the majority of Drammen’s municipal council. Vardar’s council has previously approved the agreement, as have Statkraft and a large majority of the municipalities in Agder.

“Getting the support of our shareholders allows us to continue with the merger negotiations, which we are looking forward to. Our impression is that the shareholders have conducted a thorough review in which the politicians have looked carefully into what a merger would mean for the shareholders and society. We have received lots of good feedback and suggestions in relation to jobs, important considerations with respect to influence and the nature of the final agreement. We will bear them in mind during the rest of the process”, says Andersen.

The road ahead

Now that the shareholders have given their approval, work starts on valuing both companies, negotiating the exchange ratio and drawing up the final agreement.

“The plan is to present the final merger agreement to the individual shareholders and municipalities for their review early next year”, says Torjussen.

Contact people:

Ann-Christin Andersen, Chair of Glitre Energi, tel. +47 934 43 606
Lars Erik Torjussen, Chair of Agder Energi, tel. +47 905 12 330

About Glitre Energi:

Glitre Energi owns, develops and operates infrastructure based on hydroelectric power. We generate 100% renewable energy and supply it to a multitude of households and businesses. Our core focus is on creating value, taking environmental responsibility and promoting a fully electrified society. Glitre Energi AS is owned, through the company Vardar, by Drammen Municipality, with a 50 percent ownership interest, and 19 municipalities in the former county of Buskerud, with a combined ownership interest of 50 percent.

About Agder Energi:

Agder Energy Group supplies clean energy so society can prosper now and into the future. The Group’s activities comprise the generation, distribution and sale of renewable energy, as well as providing energy-related services. Agder Energi is owned by the municipalities in Agder, which have a combined ownership interest of 54.47%, and Statkraft Industrial Holding AS, which owns 45.53% of the shares in the company.