In 2016 Opplysningsvesenets fond (the Norwegian Church Endowment), the sole owner of Clemens Kraft, decided to sell close to half of its shares to a long-term investor.
Clemens Kraft is among Norway’s TOP 5 small-scale hydropower operators/developers; and the company was expected to enter a rapid growth phase, tripling its power production from close to 200 GWh by end of 2016 to 600 GWh by end of 2022. The pension fund for the employees of a Swiss retail group Coop – CPV/CAP Pensionskasse Coop – was found to be a suitable potential co-owner, and Multiconsult was invited to assist CPV/CAP Pensionskasse Coop in due diligence of Clemens Kraft.
Scope of work
Multiconsult delivered a technical and financial due diligence. As part of the advisory, Multiconsult inspected the power plants, reviewed their operating history and analysed future planned developments.
As part of the technical due diligence, Multiconsult suggested a long-term production estimate, as well as advised on long-term operating expenses and capital expenditure. As part of the financial due diligence, Multiconsult reviewed the accounts of the holding company and its subsidiaries, analysed past and forecasted future financial performance and reviewed the seller’s valuation proposition. Multiconsult delivered own valuation of the target company and suggested fair equity value to the buyer.