E.On launches takeover offer for shares in innogy SE

The PTO is being made following the agreement between E.On and RWE of March 12, 2018, under which E.On will acquire RWE’s 76.8 percent stake in innogy

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E.On launched its public takeover offer (PTO) for shares in innogy SE following approval of the offer document by the German Federal Financial Supervisory Authority.

The PTO is being made following the agreement between E.On and RWE of March 12, 2018, under which E.On will acquire RWE’s 76.8 percent stake in innogy via a far reaching exchange of assets and businesses.

Johannes Teyssen, CEO of E.On said: “Following the acquisition of innogy, E.On will be the first formerly integrated utility to focus entirely on meeting the demands of its customers across Europe. The transaction will strengthen our entrepreneurial core and create enormous potential for our customers, shareholders and for our employees. With the first unavoidable job cuts, we are acutely conscious of our responsibility towards employees of both companies. We will treat each employee equally fairly and of course we will handle this period of change socially responsibly and in close alignment with our long established social partners in time-honored fashion.”

The total offer value of $48 per share announced at the time of the publication of the intention to launch a PTO, i.e., on March 12, 2018, included the anticipated dividend of innogy SE for the fiscal year 2017. This represented a premium of 28 percent to innogy’s last share price unaffected by general takeover speculation on February 22, 2018, and a 23 percent premium to the three-month volume-weighted average trading price (VWAP) as of March 12, 2018, the date on which the transaction agreement was announced.

If the takeover offer completes prior to the date on which innogy’s Annual General Meeting resolves on the dividend for the fiscal year 2018 or if the dividend for the fiscal year 2018 is less than $2 per share, E.On will increase the offer price such that the total value of €46.33 per share remains unchanged for the shareholders of innogy.

Marc Spieker, CFO of E.On: “We are offering innogy shareholders an attractive premium and thus, present them the opportunity to participate in the value creation of this transaction. The transaction will strengthen E.On’s profitability and significantly increase the potential for future growth.”

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