The takeover will be undertaken via a stock-for-stock exchange offer. Capital Stage is offering five new shares from a capital increase for every three shares of Chorus.

Chorus currently manages a portfolio of 75 plants situated in five European countries with a total installed capacity of over 325MW.

The combined entity will have a market capitalisation of about EUR824m with total power generating capacity of over 900MW.

The joint company benefits from a mix of wind and solar capacity. With a share in excess of 50% of total capacity, Germany remains the largest market for the combined entity.

The business combination enhances the positioning for new acquisitions and the entry into new geographical regions in and outside of Europe.

Capital Stage CEO Klaus-Dieter Maubach said: "The planned combination creates one of the largest independent operators of solar and wind projects in the growing renewable energies market in Germany and Europe.

"With this outstanding positioning, we actively shape the consolidation of the industry and create the basis for future growth. The joint strength enables us to engage in larger acquisitions and facilitates the entry into new promising geographic markets."

Capital Stage said the offer implementation is subject to the approval of the offer document by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin).

Image: CHORUS Clean Energy Headquarters. Photo: Courtesy of CHORUS Clean Energy AG.