TELETRADER News
9/20/2017, 1:45 PM (Source: TeleTrader)
more TeleTrader news

Fortum offers €8.05B for Uniper via E.ON's stake

Reacting to media reports on Wednesday, Fortum Corp. confirmed it intends to acquire the 46.65% in German power generation and energy trading company Uniper SE from E.ON SE and then launch a bid for a complete takeover. The offer, which reached an advanced stage in negotiations, values the utility at €8.05 billion, the Finnish conglomerate said. The tender is expected to be conducted early into the next year, according to the announcement.

The investor has electricity generation assets and distribution operations in the Nordics, Baltic countries, Poland, Russia and India. It said E.ON, which spun off Uniper Group last year and reduced ownership, is currently clearing some of the issues with regulators. The offer is equivalent to €22 per share or a 36% premium from the valuation before speculation emerged in late may, according to the firm based in Espoo.

"Uniper's stated role as the provider of security of supply would be an excellent match with Fortum's ambition to accelerate the energy transition with increasing renewable generation and innovative solutions. Both are needed to make the change happen and each plays a crucial part as Europe transitions from a conventional to a cleaner and more secure energy future," said Pekka Lundmark, Fortum's president and chief executive.

Breaking the News / IT