German utility Eon formally launched its voluntary public takeover offer of rival Innogy today, after the bid was approved by German financial watchdog BaFin.
The €40 per share offer represents a premium of 28% on Innogy’s share price at the end of February.
The offer will expire on 6 July 2018, but the takeover is not expected to be closed before mid-2019, Eon said.
The move follows a complex deal signed last month between Eon and RWE, under which Eon will acquire RWE’s 76.8% stake in Innogy via an exchange of assets and businesses. RWE will receive 16.7% of Eon’s equity.
RWE will end up controlling the renewable generation assets of both Eon and RWE.
For its part, Eon will emerge with the retail and network businesses of Innogy, and will also acquire the same unit from RWE.
The transaction will be enacted in several steps and is subject to regulatory and board approvals.
Image: Innogy
Eon starts Innogy move
By EBS