E.ON to Pursue Merger Squeeze-Out at Innogy
September 04 2019 - 1:19PM
Dow Jones News
By Pietro Lombardi
E.ON SE (EOAN.XE) said Wednesday that it intends to carry out a
merger squeeze-out as part of its planned takeover of Innogy SE
(IGY.XE) to fully integrate the company into the E.ON group.
Minority shareholders will receive "adequate cash compensation,"
it said.
The German utility said it wants to swiftly integrate Innogy as
soon as the European Commission approves the deal.
"This procedure, known as a merger squeeze-out, provided for in
company law applicable from a shareholding of 90 percent, allows us
to implement the integration plans, which have been developed
together with innogy during the last months, as swiftly as
possible," Chief Executive Johannes Teyssen said.
The takeover is part of a complex deal between E.ON and Innogy's
parent company RWE AG (RWE.XE), which would effectively split
Innogy's assets between the two companies.
RWE would retain control over Innogy's renewable-generation
centers, while E.ON would take over the retail and distribution
networks.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
September 04, 2019 13:04 ET (17:04 GMT)
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