Greenvolt relegated from main stock market index

Portuguese renewables company Greenvolt has been relegated from Euronext Lisbon’s main listing.

This is because 97.64% of its shares are now held by the US company Kohlberg, Kravis and Roberts (KKR) following a Public Acquisition Offer – KKR is a leading global investment firm offering solutions in alternative assets spanning real estate, private credit, private equity, and infrastructure.

KKR has announced its intention to take the company of the stock market so it has ceased trading on the PSI Geral – the main index at Euronext Lisbon – since Tuesday. The PSI now only has only 15 listed companies on that index.

According to an official source at Euronext Lisbon, Greenvolt’s exclusion from the PSI is down to the application of rules governing mergers and acquisitions. “If an offer is considered unconditional and the purchaser obtains control of more than 85% of the shares of the company acquired, it must be removed from the index.

The removal must take place from the close of the first working day of trading after the offer has become unconditional” – in other words binding.

“If a company is removed from the index, the divider will be adapted to maintain the level of the index and the sellers and their financial representatives are immediately informed about any decisions with an impact on the market and are informed of the relegation.”

On Tuesday Greenvolt shares gained in value by 0.87% to €8.09, below the operation price.