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Innogy & E.ON Merger E.ON misses majority

Innogy & E.ON Merger E.ON misses majority
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Christian Boas

The Essen-based energy giant E.ON has not reached the threshold required for a so-called squeeze-out procedure in the course of the takeover of the RWE subsidiary innogy. This means that the company controls 86.2 percent of Innogy’s capital at the end of the extended vesting period.

For a squeeze-out, ie the compulsory exclusion of minority shareholders through severance payments of the majority shareholder, at least 90 percent would have been required. As Dow Jones reports, after the first round, which ended early July, E.ON already held more than 82 percent of the shares.

At that time, E.ON CFO Marc Spieker was nevertheless “very satisfied”. Already with the purchase of the “RWE majority shareholding, we would have had all the necessary room for maneuver to integrate innogy into E.ON after the transaction was completed,” it said. He announced that he would prepare the plan for the incorporation in the coming weeks with his future colleagues.

Some mutual funds expect Spieker to once again boost its bid for a complete takeover. Because only then, according to the experts, the rest of the papers can be secured. Spieker, however, had already excluded this step in advance of financial improvement. With the squeeze-out, E.ON intends to prevent small and micro-shareholders from blocking or at least delaying important decisions.

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