PERTH (SCOTLAND) (dpa-AFX) - Innogy SE (IGY.DE) and SSE Plc announced Monday that they could not agree on a joint solution for the necessary direct and indirect financial contributions to proceed with proposed SSE Energy Services/npower transaction.
The companies said they have stopped the negotiations on commercial adjustments for combining their retail businesses in Great Britain as announced in November 2017.
The British retail business of Npower therefore remains with innogy for the time being. The innogy Board currently assesses the different options way forward. As a consequence, Npower will be accounted for as continued operations again, which requires adjustments on the Group's outlook for fiscal year 2018.
Including Npower, innogy now expects an adjusted EBIT of around 2.60 billion Euros on innogy Group level, compared to around 2.70 billion Euros expected earlier. Adjusted net income is now expected to be above 1 billion Euros, compared to previous estimate of above 1.10 billion Euros.
Based on the target corridor for the dividend payout ratio of 70 - 80% of adjusted net income, that innogy has applied so far, a dividend for fiscal year 2018 on the same level as last year's 1.60 euros / share would not be possible.
innogy said it has not yet given an outlook for 2019. From current perspective, including Npower in innogy's Group figures in 2019 would have a negative impact on adjusted EBIT in the area of negative 250 million Euros.
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