The proposed combination will take the form of a contribution of GDF Suez Energy International into International Power in exchange for newly issued International Power shares in order to create an enlarged International Power (New International Power).
Following completion of the combination, International Power shareholders will own 30% of New International Power and GDF Suez will own the remaining. GDF Suez Energy International will be transferred to International Power with EUR4.4bn of net financial debt as at June 30, 2010.
Gerard Mestrallet, chairman and CEO of GDF Suez, said: “This agreement, which combines these two businesses, creates the leading global energy player in IPP with strong market positions in Latin America, North America, UK-Europe, the Middle East, Asia and Australia.
“The combined business will have both the operational expertise and the financial flexibility to capture the significant growth opportunities in international energy infrastructure markets over the next decade.”
