Renewable energy company Proventus Energy is reversing into Plus-quoted Captive Audience Display Solutions (CAds).
CAds is developing an Out-of-Home Digital Media Network in petrol stations in Ireland and other countries but progress is slow. That made management look at other opportunities.
Proventus is focused on wind and solar developments and consultancy. It owns 90% of Proventus Energy Bulgaria, a project management company, and 80% of Dobrotich Wind, which has the right to construct a wind farm at Dobrotich in Bulgaria. At a value of between €220,000 and €250,000 per 1MW, the 80% stake in the 200MW Dobrotich project is valued at €36.8 million. Another subsidiary, Proventus Solar, is involved in solar projects in Bulgaria, which have a value of €18.6 million - based on 75MW at €248,293/MW approved.
CAds already owns 3.916% of Proventus and is paying £47.5 million in shares at 1.75p each for the rest, which is equivalent to 92% of the enlarged share capital. Proventus' owners Samrat Deep Bhandari and Todor Valev Todorov will join the CAds board as chief executive and finance director.
The valuation looks high even if the project valuations are taken into account. At the current share price of 2.5p, the group would be valued at £75 million.
12-month high/low: 2.5p/1.25p
Market cap: £7.1 million