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MVM heading field in race for E.ON’s Czech Innogy operations
Posted on Friday, 26 June 2020 11:59
MVM is considered the frontrunner in the planned sale of Innogy’s electricity business in the Czech Republic, according to Reuters.
Citing two sources close to the situation, the news provider said that talks are continuing with other interested parties, EPH and Total, which have joined forces on a bid.
They added that Czech investor KKCG has also thrown its hat into the ring.
The discussions with MVM have not yet reached the stage of becoming exclusive, the people, who did not wish to be identified, said.
No official statement on this latest report has been made as yet.
Reports of a sale of the Czech Innogy business emerged in September 2019, when Bloomberg said E.ON had hired BNP Paribas to help it jettison the business, which it was picking up through its acquisition of an additional stake in Innogy.
People with knowledge of the matter told the news provider at the time that the divestment could be worth up to EUR 1.00 billion.
E.ON increased its stake in Innogy from 79.8 per cent to 90.0 per cent for EUR 2.08 billion in January of this year.
At the beginning of June, the German firm bought the remaining 10.0 per cent of the business for EUR 2.38 billion.
There have been 643 deals targeting electric power generation, transmission and distribution companies announced worldwide since the beginning of 2020, according to Zephyr, the M&A database published by Bureau van Dijk.
Of these, the largest is worth EUR 2.71 billion and took the form of an acquisition as Fujian Huadian Furui Energy Development signed on the dotted line to buy Huadian Fuxin Energy at the beginning of this month.
In all, four deals targeting companies in the sector have broken the USD 2.00 billion barrier in the year to date, while the top seven all surpassed USD 1.00 billion.
© Zephus Ltd