28-06-2011: Court action against the Squeeze out launched by GDF Suez on Electrabel

Deminor Catalyst Fund wins case before Belgium's Supreme Court

 

Deminor Investment Management, the manager of the Deminor Catalyst Fund (formerly Deminor Active Governance Fund), has taken note that Belgium's Supreme Court has rendered a decision in the court proceedings opposing former Electrabel shareholders to GDF Suez in connection with the squeeze out launched by GDF Suez in July 2007.

Deminor Investment Management is satisfied with this decision of the highest court which overrules the decision of the Court of Appeal and transfers back the case against GDF Suez to another Court of Appeal which will have to handle the case. The Supreme Court has granted the appeal filed by Deminor Catalyst Fund and by other former Electrabel shareholders against the decision of the Court of Appeal of Brussels of 1 December 2008 which had dismissed the claim of those former shareholders.

Deminor Catalyst Fund disputes the price paid by Suez as part of its squeeze out of Electrabel minority shareholders. Deminor Catalyst Fund considers that the price of €590 per Electrabel share does not reflect the fair value of Electrabel, and particularly the profits resulting from its nuclear power plants and an extension of their lifetime as well as other parameters which were used to value the Electrabel share.

The Court of Appeal shall therefore have to once more hear this case on its merits. This should reopen the discussion over the recurring profits of nuclear power plants and their positive impact on Electrabel's (and GDF Suez's) own profits of which former Electrabel shareholders were unduly deprived and make such discussion more objective.

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Contacts:

 

Charles Demoulin : + 32 2 674 71 10
Pierre Nothomb: + 32 2 674 71 10

 

www.dagfund.com

DIM Press Release - Squeeze out Electrabel - 28 June 2011 - DEF.pdf