The Board of Directors of Saga Tankers ASA announces the strategy within renewable energy investments and has appointed Bjorn Simonsen as Chief Executive Officer (CEO). Following the renewable energy strategy, the company will divest non-core assets and change name to Saga Pure ASA.
“Saga sees significant opportunities within renewable energy investments. We have extensive experience from developing companies within the renewable energy universe, e.g. from the global leader within hydrogen technologies Nel ASA. Saga has a strategy of actively working with its investments in both listed and private entities with a significant value creation potential, and will leverage on the deal flow, resources and capabilities in our network, “ says Martin Nes, Chairman of the Board of Directors.
The Board of Directors of Saga has focused the company’s investment strategy towards renewable energy investments. Following the renewable energy strategy, the company has entered into agreements to divest non-core assets and will change name to Saga Pure ASA. See notice for an extraordinary general assembly, to be released shortly, for additional transaction and company details.
In addition, Bjørn Simonsen has been appointed CEO of Saga as of 1 December 2020. Simonsen comes from a management position in Nel ASA, where he has been instrumental in the development of the company since 2014. Simonsen holds a MSc in Energy and Environmental Science from NTNU and has been allocated 16.67 million shares in Saga through a private placement, at a subscription price of NOK 0,90,- per share. In addition, Simonsen has been allocated 15 million share options, subject to approval of the upcoming Extraordinary General Meeting, with strike share price of NOK 1,5,-, NOK 2,- and NOK 2,5,-, vesting for a total period of up to 36 months. Additional information on the private placement and the option grant will be made available in a separate stock exchange announcement.
“Bjørn is one of the most knowledgeable and respected professionals within the hydrogen industry, which is one of the initial focus areas in our investment universe. Bjørn brings world-class hydrogen competence and an international network providing technical due diligence competences and relevant deal flow,” says Nes.
“I have worked with Øystein Stray Spetalen and Martin Nes since the rejuvenation and corresponding listing of Nel. Øystein and Martin served as active board members in Nel for years, and I look forward to joining them in Saga to create value for our shareholders by developing and investing in companies within renewable energy and hydrogen,” says Simonsen.
Simonsen will take the position as CEO of Saga from 1 December 2020, with Espen Lundaas serving as Chief Financial Officer from the same date. Saga will further strengthen the organization within the renewable business, in line with the new strategy.
Saga today announces the initial investment under the focused strategy with the NOK 55 million investment in Everfuel A/S. The company is an integrated green hydrogen fuel company positioned to capitalize on the EUR multi-billion hydrogen heavy-duty fuel market now opening up in Europe. The investment follows a private placement and subsequent listing of Everfuel A/S on Merkur Market, with Saga as cornerstone investor.
Transaction details for focused strategy
As part of the focused strategy towards renewable energy, Saga will divest the following assets:
- 55% ownership in indoor arena Vallhall to be sold to Tycoon Industrier AS for an enterprise value of NOK 120.0 million.
- The transaction is subject to the approval of the extraordinary general assembly and an independent and reputable advisor has provided a fairness opinion to the Board of Directors of Saga in relation to the transaction. In addition, Ernst & Young AS, the company's auditor, has prepared a report and the Board of Directors have issued a statement in accordance with the Norwegian Public Limited Company Act §3-14.
- 105 846 245 shares in S.D. Standard Drilling to be divested
- Other investments corresponding to approximately NOK 32 million will be sold
- Following the completion of the transactions, including purchase of shares in Everfuel A/S, Saga will hold in the range of approximately NOK 180 million in cash, with no long-term debt. The company will continue to be invested in Vistin Pharma ASA.
See notice for an extraordinary general assembly, to be released shortly, for further transaction and company details, in addition to the change of articles of association, change of name, authorization to the board of directors to increase the share capital, and more.