Fortum enters into agreements to acquire stake in Uniper for EUR2.3bn.

Global Banking News-October 9, 2019-Fortum enters into agreements to acquire stake in Uniper for EUR2.3bn

(C)2019 ENPublishing - http://www.enpublishing.co.uk

Fortum Oyj (HEL:FORTUM), a clean-energy company, announced on Tuesday the entering into agreements to acquire all the shares held by funds managed by Elliott Management Corporation and its affiliates (Elliott) and Knight Vinke Energy Advisors Limited and its affiliates (Knight Vinke), a total in excess of 20.5%.

The company said it will pay approximately EUR2.3bn for the combined shareholding, corresponding to EUR29.93 per share.

Upon closing of these transactions, Fortum's share in Uniper will increase to over 70.5% and the total investment in Uniper to approximately EUR6.2bn, representing an average acquisition price of EUR 23.97 per share.

Closing of this transaction, which is subject to customary regulatory clearances in Russia and the US, is expected by the end of the first quarter of 2020.

Fortum added that it is in discussions with the Russian state authorities and has made a preparatory filing to the Russian Federal Antimonopoly Service. No further European Commission clearance is required. In 2018, Fortum already received unconditional merger clearance from the Commission.

Reportedly, this transaction will be financed by Fortum with existing cash resources and committed credit facilities underwritten by Barclays Bank Plc.

Fortum will fully consolidate Uniper as a subsidiary in its financial statements from closing of the transaction.

Also, Fortum intends to be represented on Uniper's supervisory board commensurate with its ownership without delay. Fortum will discuss with Uniper with...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT