On Friday, Toivo Group has signed a preliminary agreement to obtain the entire share capital of E-Heat.
Real estate development company Toivo Group says on Friday that he signed a preliminary agreement on its associated company E-Heat Oy:n the acquisition of the entire share capital. E-Heat’s share capital valuation in transaction is approximately EUR 12 million.
The purpose of the Toivo Group is to acquire the entire E-Heat stock to extend its business to the area of data center and sustainable energy business. E-Heat is a Tampere-based heating company that utilizes the waste energy of data centers to produce carbon-free heat.
Toivo Group believes that, if the transaction is implemented, the data center and energy business would become a new support leg that would create a significant owner value for its shareholders.
I hope that, if implemented, the acquisition may have a significant impact on the medium and long term on its turnover and operating profit. The company estimates that E-Heat has significant growth potential and, if successful, the company’s business is more profitable than the real estate business.
Toivo will open the background of the planned acquisition and present E-Heat’s business at its financial statement conference on February 26.
The purchase price would be paid mainly by the new shares of hope
The preliminary agreement sets out the terms and conditions under which hope will make an offer to E-Heat’s shareholders to carry out the acquisition.
The other parties of the preliminary agreement are E-Heat’s founding shareholders, who own about 33 % of the company. Currently, Toivo Group and the founding shareholders jointly own about 56 percent of E-Heat Oy’s share capital.
In the preliminary agreement, the founding shareholders are committed to accepting an offer that will be made to E-Heat’s shareholders. E-Heat’s shareholders have agreed on arrangements for the transfer of shares, which allow Toivo and the founding shareholders to expect the transaction to be completed as planned.
The purchase price of EUR 12 million is to be paid mainly with the new shares of hope, which Toivo counts when the transaction is implemented. The signing of the final transaction agreement is expected to take place during March and April 2025.
The company announces the transaction and its terms in more detail when the transaction agreement is signed.
The realization of the transaction is conditional, among other things, to complete the hope of the Due Diligence inspection by hope in a satisfactory way. There are other conditions and uncertainties typical of acquisitions, the company emphasizes.