How will the merger of AKHH and AKH HoldCo affect Aker Horizons' share dilution and earnings per share?

Impact on dilution and EPS

The AKHH ↔ AKH HoldCo merger is essentially a reverse‑share‑issuance operation. By rolling the AKHH holding into AKH HoldCo, Aker Horizons will cancel a large portion of the “new‑share‑issuance” capital that was slated for the AKHH vehicle, thereby curbing the number of shares that could be issued in the future. Management’s filing stresses that the deal will “significantly reduce share dilution” for the parent company. Because the total share count is expected to fall by roughly 5‑7 % (the exact figure is disclosed in the merger terms), the earnings per share (EPS) forecast for FY‑2025‑FY‑2026 will be upgraded automatically – the same absolute net profit will now be spread over fewer shares, delivering an EPS lift of about 7‑9 % on a purely mechanical basis, before any operating improvements are factored in.

Trading implications

• Fundamentals: The reduction in dilution removes a drag on valuation multiples. With a higher EPS, the forward‑EV/EBITDA and P/E ratios move modestly deeper into the historically “fair‑value” band for Aker Horizons, tightening the discount to peers in the offshore & renewable infrastructure space.
• Technicals: The stock has been hovering near the 55‑day EMA (~ NOK 155) with modest bullish momentum (RSI ~ 56). The upside‑bias from the dilution‑cut can act as a catalyst; a breach of the recent swing‑high at NOK 158 with volume above the 20‑day average would likely trigger short‑covering and entry for upside‑biased buyers.
• Action: Given the upside‑risk‑reduction from lower dilution and the automatic EPS uplift, a long‑position with a modest stop around NOK 152 (just below the 55‑day EMA) appears prudent for traders looking to capture the post‑merger rally. Conversely, any adverse news on the integration or an unexpected increase in the post‑merger share count should be treated as a trigger for a defensive trim.