Germay based solar and wind farm operator Capital Stage has launched a voluntary takeover of Munich based operator of solar and wind parks Chorus Clean Energy for about $328m.
The combined entity will have a market capitalisation of around EUR824m with total power generating capacity of more than 900 MW.
According to Capital Stage, the combined entity will become leading operator renewable energy power plants in Germany and Europe.
The companies believe that the combination will be able to expand the geographic reach and helping them in terms of operational and financial synergies.
Chorus Clean Energy CEO Holger Götze said: "The combination of both companies is an attractive opportunity for both parties to pool their competencies and realize significant scale advantages.
"With joint forces we will be even better able to benefit from the opportunities of market growth and consolidation in Germany and Europe. In addition, the combined company will have a more attractive capital markets profile due to increased size and liquidity."
Capital Stage is offering plan to acquire the company through stock-for-stock exchange, offering Chorus shareholder five Capital Stage shares in exchange for every three shares.
The offer said to be a premium of 36% compared to the respective volume-weighted average share prices of Chorus and Capital Stage over the last three months prior to May 27, 2016.
Capital Stage CEO Prof. Dr. 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."
Founded in 1998, Chorus Group currently operates 76 solar and wind parks in five European countries with a total power generation capacity of 335MW.
Capital Stage on the other hand operates solar power plants and wind parks in Germany, France, Italy and the UK with a combined power generation capacity of about 600 MW.
Capital Stage CFO Dr. Christoph Husmann said: "The combined balance sheet strength and market capitalization enable new attractive opportunities of growth financing and access to new investor groups.
"The shareholders of both companies will benefit from an even more attractive joint company with improved growth prospects and a more liquid stock."