Under the proposed deal, International Power will merge with GDF Suez Energy International to create a new International Power 70% owned by GDF Suez. International Power shareholders will also become entitled to a cash payment of 92 pence per share following completion by way of a special dividend, totalling £1.4B. GDF Suez Energy International will be transferred to International Power with £3.7B of net financial debt as at 30 June 2010.
The new company – which will continue to be listed on the London stock exchange – will combine International Power’s 45 power stations (including hydro) with GDF’s international assets. International Power chief executive Philip Cox will remain in his position at the company, with Dirk Beeuwsaert as Non-Executive Chairman.
The combined business will benefit from a stronger presence in high growth markets such as Latin America and greater exposure to fast growing economies in Asia and the Middle East.
Commenting on the merger, Gérard Mestrallet, Chairman and CEO of GDF SUEZ, said: “The combined business will have both the operational expertise and the financial flexibility to capture the significant growth opportunities in international energy infrastructure markets over the next decade. International Power will be particularly well positioned to capture the growth opportunities in emerging markets, where energy needs will be strong in the coming years. As a result of this transaction, GDF SUEZ will achieve its strategic objective of 100GW in operation and strengthen its worldwide leadership in power generation.”
The merger is conditional upon, among other things, agreement of definitive documentation and the approval of International Power’s shareholders. The Directors of International Power intend to unanimously recommend to International Power’s shareholders that they vote in favour of the deal. Completion is expected at the end of 2010 / early 2011.
