Innogy, RWE, E.ON shares soar in pre-market on break-up plans

Innogy saw its stock jump 16 percent in pre-market trade on Monday after parent RWE along with rival E.ON announced plans to divide up the operations of Germany’s largest energy company by market value.

The plans, announced on Sunday, are part of sweeping improvements by utilities as they look to bolster green energy along with prepare for Germany’s exit by nuclear power in 2022.

They come just two years after RWE spun off renewable, retail along with network operations to form Innogy along with E.ON split off some of its business to create Uniper.

Shares in Innogy were indicated to open 16 percent higher in pre-market trade. RWE, which owns 76.8 percent of Innogy, was indicated 8 percent higher along with E.ON was seen up 6 percent.

As part of Sunday’s deal, E.ON plans to launch a 40-euro-per-share, or 5.2 billion euro ($6.4 billion), offer to Innogy’s minority shareholders, a 16 percent premium to Friday’s closing cost.

“We believe that will that will development will be taken very positively as the market will see a 40 euros per share takeover offer as very likely for Innogy,” Macquarie analysts said in a note, raising their rating to “outperform” by “neutral”.

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