A new development in Germany’s renewable energy sector has emerged as activist fund Enkraft urges ABO Energy to ensure that its ongoing sales process protects all shareholders, not only the founding families who currently hold 52% of the company. The call comes after ABO Energy announced in late September that it had appointed private bank Metzler to advise on a potential deal that could transfer control to an outside investor.
While German takeover law typically requires a full public offer once an investor exceeds the 30% ownership threshold, those rules do not apply to Germany’s open market, where ABO Energy is listed. This regulatory gap has raised concerns that smaller investors may be disadvantaged in a change-of-control scenario.
Enkraft — holding over 4% of ABO Energy — stressed in a November 5 letter seen by Reuters that management must act in the interests of all shareholders, especially if it facilitates the acquisition through due diligence support or by appointing advisors that benefit only select stakeholders. The activist fund has repeatedly criticized ABO Energy’s strategic decisions, including a recent change in its legal structure which it argued weakened the company’s access to capital markets.
ABO Energy, valued at approximately €315 million ($365 million), declined to comment on the letter. As the renewable energy sector faces increasing consolidation, the outcome of this process will be closely watched as a potential benchmark for shareholder fairness in loosely regulated market environments.