04/25/2012

(April 16, 2012)—French energy giant GDF Suez, Europe's biggest utility company by market value, sweetened its takeover bid for the remaining 30 percent of International Power Plc (IPR) it does not already own, to 6.4 billion ($10 billion).
 
The deal comes after the London-based company last month rejected a 390 pence a share or $9.5 billion offer from GDF Suez saying that the bid undervalued the company.

GDF Suez said that it and the independent directors of IPR reached an agreement on the terms of a recommended cash offer at 418 pence for each IPR share, representing a 20.8-per cent premium since 29 February, the last business day before the media speculated that GDF Suez would make an offer for IPR.
 
GDF Suez "has made an attractive proposal and the independent International Power directors have concluded that it represents a price that fairly reflects the company's position in international power generation markets and its inherent growth potential," said Neville Simms, senior independent director of IPR and chairman of the committee of independent IPR directors.
 
"The acquisition of the minority stake in International Power, based on strict financial discipline, constitutes a major step in the development of the group," said Gerard Mestrallet, chairman and CEO of GDF Suez.
 
Formed by the demerger of National Power in 2000, IPR generates electricity from various sources, including gas, coal, wind, solar, pumped storage, oil, and water.
 
The company has 45 power plants with 32,358 megawatts of capacity in operation and 4,567 megawatts of capacity under construction.
 
It supplies power to more 4 million households in the UK and also operates in North America, Europe, the Middle East, Australia, and Asia.
 
Formed through the 2008 merger of Gaz de France and Suez, Paris-based GDF, the world's second-largest power utility, had last year acquired a 70-per cent stake in IPR, in order to create one of the world's largest power generation companies.
 
GDF, which is 35-per cent owned by the French government, is the largest gas supplier in Europe and amongst the world's biggest electricity producers.
 
It generates electricity from wind, biomass and bio gas, hydro, natural gas, coal, nuclear, and other non-renewable sources, and involves in energy procurement and trading business. It had revenues of 90.7 billion ($120.6 billion) in 2011.
 
The deal would be the second biggest this year after commodities giant Glencore Plc offered to buy diversified miner Xstrata, for $41 billion.