Business Irish

Sunday 17 November 2019

One51 seeks to sell off its OpenHydro stake to French

Roisin Burke

Embattled One51 will likely offload its stake in marine energy business OpenHydro to nuclear submarine maker DCNS.

An insider says that One51's stake of the renewable energy company will probably be cashed out to the French government-controlled naval defence giant before the year is out.

DCNS owns 11 per cent of OpenHydro and is eyeing up buying either 50 per cent or the whole shebang soon.

OpenHydro last week updated shareholders on "the One51 exit prospect" and bigger acquisition possibilities.

DCNS has a "use it or lose it" buy option that expires on December 23 this year. It can let the option to buy lapse altogether, which is considered unlikely.

Option two is that it would buy 100 per cent of Open-Hydro, including One51's stake, at €3.50 per share, plus possible earnout.

Option three is that DCNS buys 50 per cent of Open-Hydro at €4 per share, with the promise to float the company on the stock market within two years. That would value the company at close to €200m.

One51 would make at least €16m from a DCNS buy, trebling its €5m investment.

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