Power grab

10 August 2010 By Pierre Briancon

The French group is injecting its nonEuropean energy assets into International Power in exchange for a 70 percent stake. GDF will help the new company deleverage, even after paying a 92pashare special dividend to UK shareholders. The deal makes sense for both sides.

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GDF Suez, the French energy group, and the UK's International Power, said on Aug. 10 that they had agreed to merge their independent power generation assets.

After the transaction, GDF will own 70 percent of the UKlisted company, which will keep its current management.

GDF also agreed to pay a 92pashare extra dividend, or 1.4 billion pounds, to International Power's shareholders, and to help deleverage its balance sheet.

The enlarged company would have revenue of about 12 billion pounds and EBITDA topping 3.3 billion this year.

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