Prague offered 5.3 billion for the gasworks, but it was not enough
The capital is still unsuccessful in its efforts to control one hundred percent of Pražská plynárenská (PP). Prague of E. ON Česká republika, which manages 49.35 percent of the company’s shares, is the second share repurchase offer. Unsuccessfully again.
“The German energy company has rejected it again, saying it is low and the proposed terms of the transaction are disadvantageous,” said a well-informed source. At the same time, he pointed out that for the first time Prague offered around 3.5 billion crowns for a PP package, and increased about 5.3 billion crowns in a second attempt a few days ago.
E. ON does not want to sell its stake in the gas company Prague yet, but even the capital does not intend to free up space for the German company. Prague recently rejected 1.8 billion crowns, which E. ON offered it for a 51 percent stake in Pražská plynárenská Holding (PPH, which controls 50.2 percent of PP).
In terms of one PP event, the offer of the German energy company was about 30 percent higher compared to the one submitted by the capital. The management of Prague told E. ON that it only has a mandate that entitles them to buy shares, not to sell them. However, it has not yet communicated any official opinion to the Germans.
You can find the whole article in today’s issue of the weekly Euro