First transaction step
E.ON will make a voluntary public tender offer to all of innogy’s free shareholders. This offer will be made as soon as the German financial services regulator, BaFin, has given clearance for the offer document. This is expected to occur in the second quarter of 2018.
E.ON and RWE will need antitrust approvals at national and European levels, which we will apply for as quickly as possible. As soon as all the necessary approvals have been obtained, the first step of the transaction will be complete. This is scheduled for mid-2019.
At this point in time, E.ON will receive our 76.8% stake in innogy. As a result of a capital increase conducted by E.ON, we will then receive approximately 440 million E.ON shares, corresponding to a 16.7% stake. The minority stakes currently held by E.ON in the Gundremmingen and Emsland nuclear power stations operated by us will be transferred to RWE. In addition, we will receive the innogy dividends due in 2018 and 2019. In exchange, we will pay 1.5 billion euros to E.ON.
Second transaction step
After the innogy shares have been transferred to E.ON, E.ON will initiate the company’s legal integration immediately. Once this has been accomplished, the transaction’s second step will have been completed. This means that: The renewables activities of E.ON and innogy will be transferred to RWE. RWE will also receive the gas storage facilities and the 37.9% stake in Kelag.
Irrespective of the timing of the legal implementation, we are entitled to the profits of the transferred assets from 1 January 2018 onwards.
We currently expect that the entire transaction will be completed by the end of 2019.