Merger squeeze-out completed and cash compensation is expected to be paid shortly
E.ON headquarters in Essen, Germany. (Credit: Wikipedia.org/Wiki05.)
The merger squeeze-out was today entered into the Commercial Register – this concludes the final step in E.ON’s takeover of innogy. “We’re very pleased that today we completed the final major step in the full takeover and integration of innogy. In the months ahead, we’ll focus on the practical integration of all former innogy operations into our Group. Throughout this process, we’ll ensure that our customers’ interests will continue to always have priority,” E.ON CEO Johannes Teyssen said.
The specified cash compensation will be paid in the coming days. Pursuant to the requirements of stock corporation law, a court-appointed auditor confirmed that the specified cash compensation of €42.82 per share is appropriate. innogy SE shares are likely to be delisted this week. Any trading that takes place on the stock exchange until this time is trading only in the cash compensation claims of minority shareholders. When the transfer resolution takes effect, innogy shares still shown in minority shareholders’ equity accounts will only represent the before mentioned cash compensation claims.
Together with RWE, in March 2018 E.ON announced its intention to acquire RWE’s innogy shares as part of a larger transaction. In mid-September 2019 the European Commission gave its green light to the transaction. In March 2020 the innogy General Meeting passed a resolution to transfer minority shareholders’ remaining shares to E.ON in exchange for appropriate cash compensation as part of a merger squeeze-out. The final steps of the transaction with RWE, i.e. the transfer of the innogy renewables business, gas storage and the participation in KELAG to RWE is now intended to be implemented at the end of June 2020.
Teyssen: “Thanks to our careful preparation, all of the transaction’s major steps have been on schedule. We achieved our goal of going from announcement to the final legal step in just over two years. Considering the size of the transaction—Germany’s corporate history has seen nothing comparable in recent decades—it’s something to be proud of. All the more reason for me to thank the E.ON and innogy colleagues involved for making this moment in both companies’ history possible.”
Teyssen emphasized that from today forward E.ON will carry out the full integration of innogy as rapidly as all previous phases of the transaction. “So far we’ve always stayed on schedule and will continue to do so, in integrating innogy”, he added, the company can draw on its extensive preparations. The new E.ON’s structure and leadership team are already set. Teyssen: “We now can and will move forward even more swiftly with the operational implementation of the integration. Employee representatives will of course be closely involved.”
The new E.ON
The new E.ON will be one of Europe’s largest operators of energy networks and energy-related infrastructure and a provider of innovative customer solutions for about 50 million customers. Going forward, E.ON will have around 75,000 employees and be active in 15 countries. The company intends to partner with its customers to propel the energy transition in Europe.
Source: Company Press Release