September 6 (Renewables Now) - German utility E.on SE (ETR:EOAN) is getting ready to undertake a squeeze-out at Innogy SE (ETR:IGY) as soon as it gets the green light by the European Commission (EC) to acquire the energy company.
As it is known, E.on will buy the 76.8% stake held by rival RWE AG (ETR:RWE) in Innogy as part of a complex asset swap between the energy groups that would leave RWE with the renewable energy businesses of both E.on and Innogy.
On Wednesday, E.on said it has informed the management board of Innogy about its squeeze-out plan, which includes merging Innogy into E.on Verwaltungs SE and excluding the remaining minority shareholders in the business in return for a yet-to-be-calculated cash compensation.
The move will be preceded by E.on’s purchase of an additional interest in Innogy of at least 9.4% through a voluntary public takeover offer in order to reach a 90% stake and enable the squeeze-out. E.on's plan is to also buy almost 3.8% via the stock market.
The transaction is pending the conclusion of a merger agreement with Innogy and certain regulatory nods. E.on said it is confident that it and RWE will obtain the go-ahead by the EC this month.