opcon merger with tricorona

I must admit until very recently, I have been somewhat concerned about the lack of information, positive or negative coming from Enerji management, certainly by comparison to what we had become accustomed to last year. Not to mention the share price falling for no apparent reason.

Some reasons behind my previous "negative" feelings ........

Late last year in Copenhagen the leaders of the world confirmed their inability to work together, in addressing the issues of climate change. An agreed plan to significantly cut carbon emissions went up in smoke amid a political party or junket fest built on hot air, extravagance and waste. Whether you believe in the climate change story or not, the indisputable fact is that the cost of generating and distributing power will continue to rise.


We have heard nothing in relation to Ian Campbell or Samantha Tough in terms of marketing & business proposals and business direction though I am assured by Greg P that is coming soon.

We have had no updates on Henderson, with last notification that there was the expectation that the Powerbox would be online by end of March. I have had no information in my research from the Cockburn Council, the engineering firm contracted to perform the Powerbox installation or the power company charged with selling power generated back to the Cockburn Council. I guess on the bright side, the company is working with trusted people on this project, people who have sworn not to give off the record comments.

We know representatives from Opcon were here in Aust Jan - Feb supposedly to discuss & plan the roll-out of the Henderson Powerbox. I suspect other issues were discussed during this time, namely the Green Funds falling through, the future Powerbox funding and continued backing via the Boxpower program.

Reasons behind my current "positive" feelings........

Comparing the Top 20 ERJ shareholding list of Jan 18th to that of 25th March, there was very little change part from one noticeable holding of $17mill.
The top 5 holders remained unchanged. There was a sprinkling of others who sold small portions and others who added. I was particularly heartened to see that Rolf Hasselstrom (President and CEO, Opcon) had acquired 4million shares. A small personal holding for a man of his extreme wealth, but a vote of confidence nonetheless.

However, my greatest source of renewed confidence and enthusiasm about ERJ moving forward has been via Opcons public offer to shareholders in Tricorona. If Opcon were successful in taking a 30% controlling interest in Tricorona, it would add massive value to both entities in particular the ability for Opcon to self fund the Powerbox roll-out with financial support for the Boxpower program.
Final day for acceptance of the Offer is 13 April 2010 with the Settlement date
19 April 2010

I expect that the ramifications for Enerji will be extremely positive. It is in Opcons interest to ensure that the Henderson project works and works well, if nothing else to prove that the Powerbox product is an all climates product and not just for cooler climates. This will also further the marketability to warmer areas under the marketing umbrella of Enerji outside Australia. Opcons potential market for China will also be enhanced with a very positive Powerbox performance at Henderson.

I have included below, excerpts from the Opcon offer. If you want to read the entire article, this is the link http://www.cisionwire.com/opcon/opcon-ab-makes-public-offer-to-shareholders-in-tricorona-ab

Opcon AB is making a public offer to shareholders of Tricorona to transfer all shares in Tricorona in exchange for newly issued shares in Opcon.

Tricorona is a major player within emissions trading with a global contact network, financial resources and broad competence.

A merger would increase opportunities to develop both Opcons and Tricoronas business. It would create the right conditions for increased sales and growth in value, with cash flow being invested back in new environmental projects.


Opcon offers one (1) newly issued Opcon share for 6.5 Tricorona shares.

There is a global need for investment in renewable energy and energy efficiency. At the same time, the lack of financing is a significant problem.

By connecting technology with financing, the right conditions are created for increased sales and growth in value, with cash flow being invested back in new environmental projects. Together, Opcon and Tricorona form a complete player that will deliver strong growth in the expansive global climate-economy sector, speeding up the introduction of new environmental technology.

The target, to achieve a pace in sales turnover of SEK 2 billion by the end of 2012, means around a doubling of the current figure. The expectations that lie behind the setting of this target include continued strong growth in bioenergy, but above all a significant increase in sales for Opcon Powerbox.

A merger with Tricorona would open the possibility for even greater growth. It is considered that a merger with Tricorona would create the conditions for additional sales of SEK 1 billion for Opcon by 2013. This would correspond to sales from around 15 electricity generation projects based on waste heat and using Opcon Powerbox in accordance with cases studied in the past year, or 20-30 bioenergy projects, or a combination of those two types of project. On top of this there would be sales and profit from Tricoronas base activities.

Opcon and Tricoronas management have developed a shared view of the market situation and the opportunities for developing business by combining technology and project financing and together achieving increased growth.

Based on the Opcon share price as assumed above, the total acquisition value for shares in Tricorona amounts to SEK 1,106 million. ($167,303,000.00AUD)