By Marc Bisbal Arias 
 

Total SA (FP.FR) said Wednesday that it has entered into an agreement with Direct Energie (DIREN.FR) to acquire 74.33% of its capital for about 1.4 billion euros ($1.73 billion) in cash.

The French oil-and-gas company said that it is offering EUR42 a share for the stake. The offer represents a 30% premium compared with Direct Energie's closing price on Tuesday of EUR32.24.

"Once this acquisition has been completed, Total will file with the French Financial Market Authority a mandatory tender offer on the securities of Direct Energie which are traded on Euronext Paris at the same price per share," the company said.

The transaction, subject to regulatory approval, is expected to close during the third quarter, and the proposed tender offer will be filed immediately after its completion.

Direct Energie's board of directors unanimously approved the transaction and said it will recommend its shareholders to tender their shares into the offer that will be filed.

Total is pursuing the deal in order to accelerate its ambition for gas and electricity in France and Belgium. Direct Energie currently has a portfolio of 2.6 million clients and its combination with Total will target over 6 million customers in France and over 1 million customers in Belgium by 2022, the company said.

 

Write to Marc Bisbal Arias at marc.bisbalarias@dowjones.com

 

(END) Dow Jones Newswires

April 18, 2018 02:46 ET (06:46 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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