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innogy worried for employee job safety

By: Matthew White 10/05/2018 innogy

General

The Executive Board and the Supervisory Board of innogy SE say they have not issued any recommendations to shareholders on E.On's public takeover.

Under the agreement between E.ON and RWE dated 12th March, both companies aim at an exchange of business activities and participations if the transaction is concluded successfully.

E.ON is to take over RWE’s 76.79% stake in innogy, whereas RWE is to obtain among other things all of E.ON’s major renewable energy activities and innogy’s renewable energy business, as well as a 16.67% minority stake in E.ON.

“Due to private agreements between E.ON and RWE, we aren’t able to conclusively assess whether the offer price altogether is fair,” says Uwe Tigges, Chief Executive Officer of innogy SE. “Irrespective of the offer price, we are extremely concerned that the job cuts planned by E.ON will be unilaterally pursued to the disadvantage of the innogy employees. There has been some movement in the talks with E.ON, especially in the last few days. However, we will measure the success of the negotiations solely by whether innogy’s employees obtain binding and reliable commitments for a fair integration process.”

“We are firmly convinced that an integration between innogy and E.ON can only be a success for everyone involved if all persons responsible consider it as a joint project and deal fairly with each other”, says Erhard Schipporeit, Chairman of the Supervisory Board of innogy SE. “The core region Rhine and Ruhr will benefit in the long term if the upcoming integration process between E.ON, RWE and innogy will be accomplished as smoothly and orderly as possible.”

With the information available, the Boards state the price per innogy is fair. However, taking into consideration all the private business activities between E.ON and RWE, they cant say as certain if the agreed consideration matches the offer price.

The Executive Board and the Supervisory Board fear that innogy’s employees might suffer structural disadvantages compared with E.ON Group employees as part of an integration. Given these circumstances, the Executive Board and the Supervisory Board say they cannot support the transaction from the innogy employees' point of view without additional safeguards in favour of employees.

The statement put forth said the potential transaction will not be closed until the end of 2019. That long period of time represents a considerable risk. E.ON thereby condones a situation where innogy’s employees will face uncertainty and qualified employees may leave the company in the time period until completion of the transaction.

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innogy worried for employee job safety

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