Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Xetra  >  E.ON    EOAN   DE000ENAG999

E.ON (EOAN)
Mes dernières consult.
Most popular
Report
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Fortum to launch $9.5 billion bid for German utility Uniper

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/26/2017 | 11:24pm CET
FILE PHOTO: Fortum logo is pictured on the biomass combined heat and power plant in Jelgava

Finnish power utility Fortum (>> Fortum Oyj) will launch an 8.05 billion-euro(7.07 billion pounds) takeover bid for Uniper (>> Uniper SE), the power stations operator and energy trading business partly-owned by German utility E.ON (>> E.ON), it said on Tuesday.

Finnish power utility Fortum (>> Fortum Oyj) will launch an 8.05 billion-euro(7.07 billion pounds) takeover bid for Uniper (>> Uniper SE), the power stations operator and energy trading business partly-owned by German utility E.ON (>> E.ON), it said on Tuesday.

It will offer 22 euros per share in cash, the primary aim being to acquire for 3.76 billion euros E.ON's remaining 46.65 percent stake in Uniper, which was demerged from E.ON last year.

Uniper, with total sales of around 67 billion euros in 2016, operates roughly 40 gigawatts of power plants in Europe and Russia. It has hydroelectric, coal- and gas-fired plants as well as stakes in gas pipelines, liquefied natural gas terminals and nuclear plants across Europe, plus energy trading operations.

"This investment will strengthen the position of both companies to advance Europe's energy transition. I believe that all stakeholders will benefit," Fortum Chief Executive Pekka Lundmark told Reuters by phone.

But sources close to the matter have said that Fortum is mainly interested in Uniper's hydropower plants and interests in Swedish nuclear power stations and has already been working with a partner that might take on Uniper's coal-fired plants.

Following media reports on the proposed deal, Fortum and E.ON confirmed last week that they were in advanced talks over Uniper.

E.ON cannot sell its own stake before 2018, as this would trigger a hefty tax payment, and therefore it has the right to tender its own Uniper stake for the same price early next year.

If it opts not to, Fortum can sell to E.ON any Uniper shares by then already acquired and, on top, would get compensation from E.ON that amounts to at least 20 percent of the equity value of its Uniper stake, or 752 million euros.

Under German takeover rules, Fortum has to make a bid for the whole of Uniper as E.ON's stake is above a critical 30 percent hurdle. The offer is unconditional on a minimum acceptance level.

DIALOGUE

Although Fortum tried to acquire the whole group already in July, Lundmark vowed that the company was not planning a takeover, or restructuring, this time.

"This deal has been signed with E.ON, and it automatically leads to the tender offer. We are totally satisfied with the E.ON stake, we are not targeting a control or a merger."

"Financially, the investment alone is very justified...This is significant, when thinking of our own ability to pay dividends."

Uniper chief executive Klaus Schaefer told Reuters on Monday he viewed Fortum's approach as hostile, saw no strategic fit and voiced doubts about how Fortum would fund a deal.

Lundmark regretted that he didn't have time to discuss with Uniper before media reports on the deal forced Fortum and E.ON to go public with it last week.

"I understand him (Schaefer) very well... But since we apparently are becoming a major shareholder in the company, I hope we can start a good dialogue."

"We are not hostile at all. We intend to be a long-term investor and we take our responsibility very seriously," Lundmark said, adding that Fortum had no intention to push for forced redundancies at Uniper, or to change its corporate seat from Dusseldorf.

Uniper published a press release after the news, saying its management board would analyse and assess the offer.

Fortum said its bid of 22 euros a share offered a 36 percent premium to the price that prevailed before speculation on a potential transaction surfaced in May.

Earlier on Tuesday, Uniper shares closed 1.2 percent higher at 23.33 euros.

State-controlled Fortum is focused on carbon-free power generation, mainly in the Nordic region and Russia, and has been looking for a deal since selling its power distribution grids for 9.3 billion euros in 2014 and 2015.

(Additional reporting by Ludwig Burger; Editing by Jane Merriman, Greg Mahlich)

By Christoph Steitz and Jussi Rosendahl

Stocks treated in this article : Fortum Oyj, E.ON, Uniper SE
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on E.ON
12/14 E ON : reached one million electric vehicle charges at E.ON Denmark
12/14 E ON : sticks with British business - CEO in WirtschaftsWoche
12/13 E ON : Smart Meters Very Well Received in E.ON Pilot Projects
12/12 WORLD PREMIERE IN SWEDEN : Five Years of Free E.ON Solar Power for Buyers of New..
12/12 E ON : Smart meters very well received in E.ON pilot projects - Positive feedbac..
12/11 WORLD PREMIERE IN SWEDEN : Five years of free E.ON solar power for buyers of the..
12/07DJUniper Issues 2018 Guidance, Raises Dividend
12/07 Takeover target Uniper promises higher dividends
12/05 Paul Singer's Elliott takes stake in takeover target Uniper
12/05 European shares slip in cyclical-defensive tug of war
More news
News from SeekingAlpha
11/21 INNOGY SE : Buy On The Dips
11/11 E.ON's (ENAKF) Management on Q3 2017 Results - Earnings Call Transcript
11/10 E.ON SE ADR 2017 Q3 - Results - Earnings Call Slides
11/08 E.ON SE reports Q3 results
09/26 Fortum launches $9.5B bid for Uniper after securing E.ON stake
Financials (€)
Sales 2017 38 262 M
EBIT 2017 2 958 M
Net income 2017 4 162 M
Debt 2017 21 250 M
Yield 2017 3,23%
P/E ratio 2017 5,29
P/E ratio 2018 13,49
EV / Sales 2017 1,08x
EV / Sales 2018 0,81x
Capitalization 20 213 M
Chart E.ON
Duration : Period :
E.ON Technical Analysis Chart | EOAN | DE000ENAG999 | 4-Traders
Technical analysis trends E.ON
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 28
Average target price 10,3 €
Spread / Average Target 13%
EPS Revisions
Managers
NameTitle
Johannes Teyssen Chief Executive Officer
Karl-Ludwig Kley Chairman-Supervisory Board
Leonhard Birnbaum Chief Operating Officer
Marc Spieker Chief Financial Officer
Ulrich Lehner Deputy Chairman-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
E.ON43.88%23 820
ENGIE22.24%42 326
NATIONAL GRID PLC-7.63%39 706
ELECTRICITÉ DE FRANCE22.72%38 073
SEMPRA ENERGY15.69%28 934
PPL CORP1.32%23 318