Win-Win Deal in German energy restructuring – RWE and E.ON both gain approx. €880 million in market cap, although possible cost savings alone should reach that level in absolute numbers. Innogy gains approx. € 2.6bn in market cap but is still trading below the level it reached last November. According to the gain in market value of its 76.79% subsidiary RWE has gained € 2bn in value today which is not reflected in its share price.
Shares opened 16% higher in line with E.ON´s takeover price of € 40 per share and since then slipped back a little bit – Innogy reported EBIT of €2.816bn for 2017 and forecasts at least €2.7bn for 2018 and Net Income of €1.224bn for 2017 and confirmed 2018 Net Income forecast of at least €1.1 bn. It will pay out €888mn in dividends for 2017 and plans the same dividend of €1.60 per share for 2018.
Innogy Market Cap valued at €22.22bn, Enterprise Value at €38bn – RWE becomes largest shareholder with 16.67% with contribution in-kind of 76.79% Innogy stake and €1.5bn in cash. Subsequently, RWE will takeover all Renewable Energy assets from new E.ON group plus KELAG stake and minority stakes in its nuclear power plants. E.ON aims to takeover all shares and de-lists company. E.ON´s market capitalization last Friday was approx. €18 billion.
Bloomberg reports about interest from competitor E.ON and from infrastructure investor Macquarie – Innogy shares still down 20% from peak reached on 8th Nov 2017 but gaines 10% from low on 6 Feb 2018. Innogy´s market cap is the same as for E.ON but twice as much as its 76% shareholder RWE.