UGe International To Go Private At 270% Premium, Netting Shareholders $2.00 Per Share In Cash

UGE International (TSXV: UGE) is going private at a significant premium to its share price. The company has received a buyout offer from an affiliate of NOVA Infrastructure Fund II, LP, which will see the solar and battery storage-focused firm acquired in an all-cash deal.

The deal will see shareholders of UGE receive $2.00 per common share held, which represents a substantial 270% premium to yesterday’s closing price of $0.54, as well as a 231% premium to the 30-day volume weighted average price of the equity.

Certain shareholders and members of management however have elected to rollover their shares into the private entity, rather than take the offer. A total of 10.4 million shares are to roll over into the new entity, representing 30.8% of the currently outstanding shares. Those that will roll over their ownership stake include the CEO, Nick Blitterswyk, two directors, and shareholders Daniel Gastel and Junfei Lieu.

“After careful deliberation, the Special Committee considers that the Transaction represents the best available result for the Company and its shareholders. The Transaction will provide shareholders, other than the Rolling Shareholders, with immediate and certain cash value at a significant premium, while providing the Company with additional flexibility to operate as a private company in the hands of a committed long-term investor,” commented Stephen Blum, director and chair of the special committee of independent directors that reviewed the transaction.

The transaction remains subject to approval by shareholders and customary closing conditions. Financing is not a condition of closing. The transaction is slated to close shortly after a shareholder meeting slated to take place in July 2024, if approved.

A break fee of $2.2 million is in play.

UGE International last traded at $1.73 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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