DUESSELDORF (dpa-AFX) - German energy company E.ON AG (EONGY.PK) Wednesday said it is in advanced negotiations with Finland's Fortum Oyi about an agreement to potentially dispose its 46.65 % stake in Uniper SE.
The agreement, which might be signed in 2017, would include the launch of a voluntary public takeover by Fortum, in which E.ON would have the right to decide to tender its shares in early 2018.
Fortum confirmed the talks while responding to Bloomberg's article earlier today regarding a potential transaction concerning E.ON SE's stake in Uniper SE.
Fortum's offer to all Uniper shareholders would comprise a cash consideration with a total value of 22 euros per share. The offer would not have a minimum acceptance condition.
The total value of 22 euros per share to be received by Uniper shareholders pursuant to the offer corresponds to a total equity value of approximately 3.76 billion euros for E.ON's 46.65% shareholding in Uniper and of 8.05 billion euros for 100% of Uniper's outstanding share capital.
Fortum noted that the total value implies a premium of 36% to the price prior to intense market speculation on a potential transaction at the end of May, as well as a 120% premium to the initial trading price post spin-off of 10 euros.
Any agreement between the parties will be subject to the required internal approvals of both parties.
In Germany, E.ON shares were trading at 9.45 euros, up 2.64 percent.
In Finland, Fortum shares were trading at 16.96 euros, up 4.6 percent.
Copyright RTT News/dpa-AFX