Dala Energi just press-released the outcome of the extra general meeting in Leksand. The meeting decided, in accordance with the board's proposal, to enter into a strategic partnership with Nordion Energi, which includes the divestment of 51% of the shares in the new platform company. The meeting also decided to enter into agreements regarding the call options with each of Rättvik municipality, Leksand municipality and Gagnef municipality, corresponding to a maximum of 24.5% of the shares in the newly formed company. We consider the outcome very positive, as the transaction with Nordion will now happen and lays the groundwork for the proposed voluntary share redemption in 2025 (which will be decided at the next AGM in H1 2025). We argue that this news should bring Dala Energi’s shares closer to our base case valuation of SEK127 per share as the investment case has been significantly de-risked.

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