EnergiMidt and ELRO has decided to merge
The Board of ELRO has just approved a merger with EnergiMidt. Together EnergiMidt
and ELRO will create Denmark's fourth largest energy company.
"The energy industry is facing massive investments in the coming
years, and it requires a company of certain size to transform these investments
in added value services for our owners and customers," says Nicholas Per
Schøler, chairman of ELRO.
"After Skylines bankruptcy ELRO’s first priority was to ensure our
members that their ownership in ELRO was safe, while we looked for a partner, for
the benefit of ELROs members and the region, who shared our vision for the
future. There has been great interest by several companies to join with ELRO.
“ELRO and EnergiMidt merging as one company liberate a huge internal
potential. Therefore we are sure to have found the right partner in EnergiMidt,
which has a growth potential. The merger means that ELRO will help to support
this development, and the new company will be the basis for an even better
business, "says Nicholas Per Schøler, chairman of ELRO.
Representatives of EnergiMidt approved the merger plans in September,
and ELRO representatives decided in an extraordinary general meeting "YES"
to the merger. Now the DEA, the competition authorities and creditors in ELRO
Energy A/S need to give their formal approval, before Denmark's fourth largest
energy company is a reality. This process is expected to be finalized before the end of the year.
Cooperative lagal status maintained
EnergiMidt will buy ELRO Administration ApS and ELRO Energy A/S, which
is under reconstruction, together with the underlying companies. The
transaction shall be treated as a merger, therefore ELROs members will become members
of EnergiMidt from the start with full voting rights. The economic part of the shareholder
rights will be transferred over a 10-year period.
The cash part of the purchase price, in the range of 200 million DDK,
to be paid over a 10-year period to ELRO Amba must be transferred to a
charitable foundation or association, beneficial for the local community in
ELROs supply area. ELROs Board will address this issue in future, to formulate
the charitable objectives and to administer the fund.
The merger means that ELRO becomes an integral part of EnergiMidt as the
name for the merged company will be. All employees directly involved in ELRO activities
and customer relationship will be taken over by EnergiMidt. Network tariffs and
subscription price in ELROs area will be harmonised to EnergiMidt. For an
average household this means an annual saving of approximately 100 DDK.
It also means that new group of Representatives will be created and a
new board will be elected. In 2013, the two companies' boards will merge the EnergiMidt
board will deliver the Chairman and a representative from the ELRO Board will
take one of the vice-chairs. In 2014 a new board of directors and
representatives will be elected.
Ready to grow
"When the merger is complete, it means that EnergiMidt will be the
country's fourth largest energy company in terms of sales with a homogeneous
and strong coverage in Jutland. Our markets are not just local. They are also
national and to a certain extent, international. The merger gives us the right
strategic foundation for future growth, "says Jens Jørn Justesen, chairman
of EnergiMidt.
Jobs for
Randers
As part of the deal included an
agreement on the location of a number of activities in ELROs headquarters in
Randers.
These include the following areas:
- Electricity
trading
- Sale of solar
cells for private households
EnergiMidt is developing rapidly. Only in 2012 EnergiMidt increased its
staff by more than 100 employees, and there is still a need for more.
"The total number of employees in Randers is expected to grow as a
result of the merger, but the merger as this means as well that there are duplications
in some functions. We will not exclude that we must say farewell to individual
employees. During the merger process, we will do as much as possible to
redeploy staff in other open positions, "said Chris Dahlerup, managing
director of ELRO.
Facts about ELRO
- ELRO Group is based in Randers and has an annual on revenue of nearly
900 million DDK.
- ELRO, which was founded in 1954, supplies in and around Randers about
52.000 customers, representing 100.000 residents and businesses in six
municipalities with electricity.
- The company is responsible for the daily
operation and development of the power distribution grid and offers in addition
energy advice and solutions with renewable energy sources for both commercial customers
and private consumers.
- ELRO is also dealing with electricity trading since the liberalisation
in 1999.
- The company provides electricity to customers throughout Denmark, with
an emphasis in Jutland and on Funen.
- ELRO currently employs 75 employees.
Facts about EnergiMidt
- EnergiMidt is based in Silkeborg and
has an annual turnover of around 2.1 billion DDK.
- EnergiMidt is a modern energy and broadband company, which supplies 180.000
customers, representing approximately 360.000 inhabitants, in a 6.000 km2 area
of the Limfjord in the north to Vejle in the south.
- EnergiMidt deals with heating, electricity and electricity trading,
sales of heat pumps and solar panels and energy cosuntancy, on national and
international level.
- EnergiMidt currently employs 715 employees.