Innogy Signs Integration Agreements With E.ON and RWE -- Update
July 19 2018 - 3:09AM
Dow Jones News
(Adds details on asset-swap terms and binding agreements.)
By Anthony Shevlin
Innogy SE (IGY.XE) has signed two legally binding agreements
regarding its planned merger with electric services provider E.ON
SE (EOAN.XE) and the integration of Innogy's renewables business
into fellow energy company RWE AG (RWE.XE).
Thursday's agreements pave the way for E.ON's asset-swap deal,
under which E.ON would acquire RWE's 76.8% stake in Innogy and RWE
would receive 16.67% of E.ON's equity in return.
In a joint statement, Innogy said the three companies have
agreed on integration processes aimed at treating employees fairly
and equally. Essen in Germany will remain the registered office and
headquarters of the new E.ON, the companies said.
Innogy had previously expressed reservations about the fairness
of the asset-swap terms, especially regarding its employees.
"The agreements with E.ON and RWE lay the groundwork for a fair
integration processes on equal terms..." Innogy Chief Executive Uwe
Tigges said on Thursday.
"Considering the fact that Innogy is being taken over, we
negotiated the best possible deal for our employees. The agreement
is also in the interest of our customers, shareholders, and other
stakeholders," he said.
In May, Innogy's supervisory and management boards declined to
give a recommendation to shareholders regarding E.ON's offer, with
Mr. Tigges saying that "due to private agreements between E.ON and
RWE, we aren't able to conclusively assess whether the offer price
altogether is fair."
Innogy at the time said it hadn't received any legally binding
commitment from E.ON or RWE regarding the future of its workforce,
warning that the extended period of time before the deal's planned
closure in 2019 would be unsettling to employees and customers.
E.ON and Innogy on Thursday also agreed on a selection process
for filling top leadership positions to form an optimal team
regardless of which company its members come from, the three German
companies said.
Under the new agreements, Innogy will support regulatory
processes and work with E.ON on measures to maintain its
portfolio.
"The purpose is to secure the future joint portfolio's intrinsic
value and to avoid uncertainty, in particular for enterprise
partners, customers and employees," the companies said.
E.ON has made Innogy shareholders a voluntary public takeover
offer against payment in cash and the additional acceptance period
runs through July 25.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com
(END) Dow Jones Newswires
July 19, 2018 02:54 ET (06:54 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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