E.ON launches takeover offer for innogy stake

It is offering the 23.2% stake for €40 (£35) per share

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E.ON has launched its voluntary public takeover offer (PTO) for shares in rival German utility innogy.

It follows the agreement between the energy giant and RWE last month, under which E.ON will acquire the latter firm’s 76.8% stake in the renewable arm via an exchange of assets and businesses.

E.ON said its offer for the 23.2% stake in innogy is worth €40 (£35) per share and the offer ends at midnight on 6thJuly 2018.

The deal is expected to result in as many as 5,000 job cuts.

E.ON CEO Johannes Teyssen 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-honoured fashion.”

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