Eon secures €5 billion to finance innogy acquisition
Eon has disclosed that the price tag it will pay for renewable spin off innogy. It has raised the €5 billion it will require to execute the acquisition. Eon plans to purchase RWE subsidiary innogy, alongside an exchange of a number of business initiatives between the two utilities.
Eon and RWE made the surprising announcement, earlier this year. Until now, however, regulatory authorities and boards of the two companies have not green-light the plans.
The funds required for the €5 billion acquisition has been made available by BNP Paribas, cites Eon. Reportedly, the funds were offered to Eon’s core banks in instalments of €400 million – connected to credit lines. Since, all of the banks that were offered the instalments accepted the round, it has resulted in an oversubscription, according to Eon.
The credit line consists of a bridge loan of €3 billion and a ‘bullet’ loan of €2 billion with a five-year life. The funds are said to be used to acquire outstanding innogy stocks that are not already in the possession of RWE.
At the end of April Eon issued a voluntary takeover offer which that is open till July 6. The offer values each innogy share at €40 per share.