Dala Energi: The case has been significantly de-risked - Redeye

Redeye updates its fair value range following Friday’s Q3 report and after the outcome of the extra general meeting. The partnership with Nordion will now become a reality, given that the Inspectorate of Strategic Products decides to give its formal and final approval (which we consider very likely). The EGM also voted that Dala Energi will issue call options to the municipalities, allowing Dala Energi to realise 75.5% of the high divestment price from the Nordion transaction. We argue that the case has been significantly de-risked following the voting, as the municipalities have also voted on the intention to utilise these options on respective municipal councils (sw. kommunfullmäktige). The next event to consider is the AGM in May 2025, where it will be voted on the voluntary share redemption. We expect further information on the final price (derived from the range of SEK130-140 per share) after the Q4 report has been released, as Dala Energi should have a better overview of how much cash it can distribute.