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Engie reportedly ponders bid for RWE's Innogy

Source: Nordsee One GmbH

March 14 (Renewables Now) - French energy group Engie SA (EPA:ENGI) is considering making a takeover bid for the listed renewables, grids and retail operations subsidiary of Germany's RWE AG (ETR:RWE), Bloomberg reports.

People familiar with the matter told the news agency that Engie is currently discussing the matter with its advisers and has not yet made a final decision on whether to make an offer. The targeted company, Innogy SE (ETR:IGY), has a market value of some EUR 18.6 billion (USD 19.8bn), Bloomberg said.

In response to the report, RWE said in a statement that it does not comment on press speculation, but noted that its supervisory board had decided back in 2015 that the company can in principle reduce its Innogy stake to 51%.

“There are no further corporate decisions in place in this context,” the company added.

Innogy was spun off from RWE and completed an initial public offering (IPO) in October 2016. Yesterday, the firm reported a 2016 adjusted net profit of EUR 1.1 billion, in line with its guidance, and proposed a dividend of EUR 1.6 per share for 2016.

The company had 3.7 GW of renewable energy capacity at the end of 2016 and plans to invest between EUR 1.5 billion and EUR 1.7 billion in its renewables division in 2017-2019. Among its largest operations are the 332-MW Nordsee One and 336-MW Galloper offshore wind projects in which Innogy holds 15% and 25% stakes, respectively.

(EUR 1.0 = USD 1.064)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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