Investments

EXIT COMPLETED

Arise AB (publ)

Arise AB (publ) (“Arise”) is a Swedish renewable energy company, the business concept is to develop, build and manage onshore wind farms on behalf of investors and its own account.

Arise is Creopretiumʼs first investment project since launch. Creopretium including related parties controls approximately one percent of the capital and votes.1 Creopretium has no board representation but has an active dialogue with the board of directors, other key shareholders and the management team.

Exhibit I1.

Key Summary Arise Investment Project

 

 

Asset class

Public equity

Style

Value

Strategy

Opportunistic with value add to active ownership

Theme

Change management; strategic recalibration, turnaround

Size

Micro cap

Risk (Low/Moderate/High)

High

IRR target

> 20%

Realised IRR

–​2.4%

Holding period

3 years

Realised total return

–​7.0%

Industry trading conditions (2015–2017)

Challenging with distress

Industrial advisor in Creopretiumʼs network

Yes

Sourcing, research and underwriting

In-house Creopretium

Instrument

Equity, common stock

Quota value per share

SEK 0.08

Voting right (common stock)

One vote per share

Interest

Approximately one per cent of the capital and votes1

Board representation

No

Stock exchange

NASDAQ Stockholm, Small Cap

ISIN

SE0002095604

Currency

Swedish Krona

Industry group (GICS)

5510 Utilities

Sub-industry

55105020 Renewable electricity

Bloomberg

ARISE:SS

Reuters

ARISE.ST

Fact sheet

Arise AB (publ)2

Articles of association

Arise AB (publ)

Auditor

Magnus Willfors, PricewaterhouseCoopers

Corporate website

http://arise.se/en

Our view

Average return on equity over three and six years amounts to ​–6.6% and ​–3.9% respectively. The most important task for the CEO Daniel Johansson is to address an unsatisfactory profitability with the goal of making Arise best-in-class in terms of return on equity.

Against the backdrop of poor historical shareholder return, Creopretium as a local operating partner has proposed strategic initiatives including a number of measures for implementation, with the ultimate goal of raising risk-adjusted return on equity and enhance shareholder value.3

Exhibit I3.

Cumulative total shareholder return to 9 November 2017

 

since 24 March 2010

since 9 October 2014

since 18 January 2016

Arise AB (publ)

​​–74.6%

​–23.7%

​–25.8%

Eolus Vind AB (publ)

​–1.9%

60.4%

​–4.2%

SIX Return Index

136.4%

53.3%

37.7%

Source: Creopretium, Infront.

Note:

24 March 2010; first day of trading in Arise common stock on the NASDAQ Stockholm Exchange following IPO.

9 October 2014; refined strategy declaration, please refer to press release from Arise AB (publ), “Revised target”.

18 January 2016; Daniel Johansson took office as CEO of Arise AB (publ).

9 November 2017; Arise share price (close) SEK 13.35.

1 Including related parties. Source: Arise AB (publ) voting list from the 2016 AGM.

2 Fact sheet Arise AB (publ). Source: NASDAQ, Morningstar.

 

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Last update: 23 February 2018