The Q3 report itself was rather undramatic, and all focus during the recent quarter has been on the Nordion partnership and the extra general meeting. The report was on the softer side due to one-off costs related to the Ellevio bid and the Nordion transaction, high non-influenceable costs within the grid business, which have not yet been compensated (pure timing effect), and low power prices, which are negative for the production segment. Power prices have increased this far in Q4, but we have not made any significant estimate changes, as our previous estimates already expect a relatively strong Q4 in terms of power prices.

We understand that Dala Energi has been receiving great attention regarding the new platform company, which we find very encouraging, as Dala Energi will own 24.5% of it following the transactions (making it the biggest value contributor in our valuation scenario). It is worth highlighting that while we consider the price tag very good (+ the cash release), we still see the outlook for the platform company as very positive and that the intrinsic value of the grid and fiber business should be higher in this structure than before. Especially since Dala Energi will enjoy Nordion’s access to cheap capital and operational synergies if new companies/municipalities join the platform.

We update our fair value range following the positive outcome of the EGM. We remove the valuation impact from Kurbit and Prosumenten and consider the transactions with Nordion and the municipalities significantly de-risked, which is why the fair value is increased for the referred segments (grid, fiber, and infraservices). Our new fair value range is SEK87(88)-163(150), with a base case of SEK137(127) per share.