Finland-based clean energy company Fortum has revealed that it is in advanced discussions to acquire E.ON’s 46.65% stake in German energy company Uniper for around €3.76bn.
The bid will also include €8.05bn for Uniper’s outstanding share capital.
If an agreement is reached between the parties, Fortum is expected to make a voluntary public takeover offer to all Uniper shareholders under the German Securities Acquisition and Takeover Act.
E.ON could also be able tender its stake in Uniper into the public takeover offer early next year.
Uniper shareholders are set to receive a total of €22 a share in cash. Any offer to be made will be subject to customary regulatory approvals.
Under the potential deal, Fortum is expected to remain an active, supportive, and reliable shareholder, as well as a strategic partner of Uniper.
Fortum president and CEO Pekka Lundmark said: “The offer would be an attractive opportunity for Uniper shareholders to capture the full value of their investment.
“Uniper shareholders could lock in the significant share price gains related to a significant degree to the prolonged takeover speculation in recent months.”
The company previously proposed a full business combination agreement to the management of Uniper, including commitments to protect the interests of Uniper’s major stakeholders.
Uniper currently has a total consolidated power generation capacity of 38GW and serves markets in various parts of the world including Russia and Sweden.