Solar specialist Heliogen turns down bid from Continuum Renewables

US artificial intelligence (AI)-enabled concentrated solar specialist Heliogen Inc (NYSE:HLGN) has turned down a USD-78.3-million (EUR 71.0m) takeover bid from Continuum Renewables Inc, describing it as under-priced.

Heliogen’s board believes that the unsolicited offer substantially undervalues the company and is contingent on the suitor’s ability to secure financing, among other demerits. Respectively, the board has ruled that the proposal is not in the best interests of the company and all of its shareholders, a statement said on Monday.

Continuum earlier in April presented a non-binding proposal to take over Heliogen for USD 0.40 per share, which at the time implied a premium of about 70% over Heliogen’s unaffected volume-weighted average price over a one-month period.

The target company shortly after responded by adopting a limited duration stockholder rights plan, also known as a “poison pill,” to protect itself against an unwanted takeover.

Shares in Pasadena, California-based Heliogen closed 4.01% lower in New York on Monday and dropped 5.49% to USD 0.27 in after-hours trading.

(USD 1 = EUR 0.906)

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