Savosolar changes its name to Meriaura Group and renews corporate structure

Analyst Comment

Translation: Original comment published in Finnish on 5/31/2023 at 7:29 am.

Savosolar's name change to Meriaura Group Plc will be implemented on June 1. At the same time, changes to the legal structure of the company will be made and the company's domicile will be moved to Turku.

Name change to Meriaura Group

Savosolar will change its name to Meriaura Group as of June 1. The merger of Savosolar (Renewable Energy business area), which manufactures solar thermal collectors and systems, and Meriaura (Marine Logistics business area), which operates in the sea freight sector, was completed at the end of 2022. We consider the name change to be logical, as Marine Logistics is clearly the much larger business area (95% of pro forma revenue in 2022) after the merger in terms of revenue, earnings and committed assets. Inderes will implement the name change on its websites in the coming days.

Renewable Energy business to be transferred to a subsidiary

On June 1, the company will implement a restructuring in which the Renewable Energy business area will be sold to Meriaura Energy, a subsidiary owned by the company. Thus, the group will consist of a parent company and separate subsidiaries, one of which will be active in marine logistics (Meriaura) and the other in the development of renewable energy (Meriaura Energy).

The next step in the transformation process could be the presentation of a new strategy

On May 11, 2023, Kirsi Suopelto, who has previously served as the group's Chief Strategy Officer and Chairman of the Board, took over as the group's new CEO. Suopelto does not have a long-term operational background in either of the group's business areas, so we see her bringing a fresh perspective to the development of the company. After the name change and restructuring, the next step could be to develop a new strategy and financial targets, which we estimate could be announced in H2 or next year.