Guanabara offer for Ecosecurities extended

Guanabara Holdings has extended its cash offer for Ecosecurities, a Dublin-based developer of emission-reduction projects, after receiving acceptances from shareholders holding 12.3 per cent.

Ecosecurities today restated its opposition to the bid and in a brief statement called on shareholders to reject the proposed takeover.

The 77 pence-a-share proposal, which had been rejected by the EcoSecurities board as inadequate, will now remain open until September 2nd, Guanabara said in a statement today.

Under Irish takeover rules, Guanabara had until today to say whether it would withdraw, extend or raise its offer. The terms and conditions of the offer are unchanged

Guanabara is a Dutch company set up by EcoSecurities’ former president, Pedro Moura Costa and its bid includes funding from BTG Investments LP, led by Andre Esteves, former head of fixed income, currencies and commodities at Zurich-based UBS AG. It was formed with

The offer values AIM-listed Ecosecurities at £91 million (€105 million), which is somewhat less than its £99 million market cap based on its share price of 84.5 pence today.

EcoSecurities, manager of the largest number of emission projects overseen by the United Nations, is up 14 per cent since Guanabara announced its offer on July 16th.

Guanabara said in an August 12th that its bid “represents fair value” because of uncertainties in the global economy and the carbon market.

Guanabara is one of three companies to consider a takeover for EcoSecurities this year, including Tricorona AB.

Electricite de France SA, Europe’s biggest power producer, said on July 16th agreed on last month not to proceed with a bid in exchange for buying part EcoSecurities’ emission credits after a takeover.

EcoSecurities Chairman Mark Nicholls said August 4th that 19.9 per cent of its shareholders, including largest stockholder Credit Suisse Group AG, had agreed to reject the offer.

The bid is conditional on achieving an 80 per cent stake, according to Guanabara’s offer document.

EcoSecurities creates and trades Certified Emission Reduction credits, or CERs, in the UN’ clean development mechanism, the world’s second-largest carbon market after the European Union program.

Additional reporting Reuters/Bloomberg