EXIT COMPLETED
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 | |
ISIN | SE0002095604 |
Currency | Swedish Krona |
Industry group (GICS) | 5510 Utilities |
Sub-industry | 55105020 Renewable electricity |
Bloomberg | |
Reuters | |
Fact sheet | |
Articles of association | |
Auditor | Magnus Willfors, PricewaterhouseCoopers |
Corporate website |
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.
Exhibit I2.
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.
3 “Open Letter to the Board of Directors of Arise AB (publ)”, 29 March 2016, Creopretium AB.
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Last update: 29 June 2018