French power producer GDF SUEZ has won the support of the independent directors of UK subsidiary International Power after upping its bid from 390p to 418p a share.
As well as receiving 418p in cash for each of their shares, International Power shareholders will be able to keep the final dividend of 6.6 cents (€0.066) in respect of 2011.
The revised offer terms value the entire issued share capital of International Power at around £22.8bn, assuming full conversion of International Power's convertible bonds and the exercising of share options.
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GDF SUEZ won't have to find £22.8bn to complete the deal, however, as it already owns 70% of the UK firm. The offer will be funded from a combination of the GDF SUEZ Group's existing bank facilities and cash resources.
When it acquired the majority stake in International Power it agreed not to launch a bid for full control of the company until August 3rd, 2012, except when its offer terms had the backing of the independent directors of International Power.
GDF SUEZ had made noises about sitting it out until August and pressing ahead with a hostile bid but evidently thought better of it.
JH
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