Company Announcement, Insider information 29 August 2022 at 7.30 a.m. (CEST)
Savosolar Oyj and Meriaura Oy to merge with a share exchange
Savosolar Oyj has signed a conditional share exchange agreement on 29 August 2022 with VG-Shipping Oy to acquire marine logistics company Meriaura Oy and the business of VG EcoFuel Oy, producer and marketer of biofuels. Savosolar’s current shareholders will own 30% and VG-Shipping 70% of the new corporate entity.
Planned merger helps meet the demand for renewable energy
Together, Savosolar, Meriaura, and VG EcoFuel can meet the growing demand for solutions based on renewable energy and fill the supply gap. The merger will speed up business expansion in solar heat, low-carbon marine logistics, and other projects promoting the green transition.
Savosolar gets a long-term, committed anchor owner in VG-Shipping, with a strong track record in successful business development in marine logistics and the production and utilization of renewable energy. The new owner will bring stability and predictability to the business of merged entity. The strong financial position of the companies improves the possibilities to make investments and underpins long-term profitable growth and value creation.
Jussi Mälkiä will continue as the principal owner and Chairman of the Board of VG-Shipping. He has invested in low-carbon marine logistics for years and strives to find new solutions for the good of the environment.
“I have studied Savosolar’s operations because I am interested in renewable and sustainable energy solutions. The company has made major investments and excellent development work for years. Savosolar’s solar thermal solutions cut carbon emissions substantially, and in my opinion, they meet the existing and growing customer needs very well. I believe that Savosolar’s sales will grow and I want to be involved in promoting the green transition in thermal energy, too. Meriaura has grown steadily, we had a strong beginning of the year, and the end of year also looks good. The long-term goal is to take Savosolar Oyj to the main list of the Stock Exchange,” says Jussi Mälkiä, Chairman of the Board of VG-Shipping.
Marine logistics will provide Savosolar Group with cash flow which strengthens its balance sheet and enables new investments as well as faster growth in clean energy business.
“Going forward, merged Savosolar can provide and deliver more tailored renewable energy turnkey solutions and, if needed, engage in energy production. In the new Group, our products and services complement each other, and there are very few overlaps. Meriaura will give Savosolar Group broader shoulders to build on,” says Jari Varjotie, Savosolar’s CEO.
Meriaura is growing steadily and profitably, and it is a pioneer company in providing low-carbon marine transport. Meriaura’s long shipping contracts, modern fleet, and strong market position in renewable energy construction projects guarantee the company good profitability as well as a stable and strong cash flow.
“The transaction strengthens the companies’ growth opportunities. The goal is to produce significant value to shareholders. The merger provides our shareholders with an opportunity to better access the growing market of renewable energy. Meriaura has many years of proven expertise in its field and profitable growth,” says Eero Auranne, Chairman of the Board of Savosolar.
Meriaura’s revenue for the first half of 2022 was EUR 33.2 million, operating profit EUR 4.1 million, and the number of personnel 148. Revenue grew by 30% from previous year. VG EcoFuel’s revenue was EUR 0.6 million in January–June, with 30% growth. Its operating …….