E.ON Sells Stakes in EWE and VNG
All divestments required under the ministerial permit have now been completed
Today E.ON concluded agreements for the sale of its stakes in EWE and VNG. E.ON is now completing all the divestments required under the ministerial permit for the acquisition of Ruhrgas ahead of the deadline in February 2004. Previously, the company had already sold its stakes in Bayerngas, Gelsenwasser and swb.
EWE shareholders acquire stake
E.ON’s 27.4-percent stake in EWE AG, Oldenburg, will be acquired by Energieverband Elbe-Weser Beteiligungsholding GmbH and by Weser-Ems Energiebeteiligungen GmbH. The two EWE shareholders acquire this E.ON participation within the framework of their preemptive rights. E.ON will earn EUR500 million in proceeds from the sale of its EWE stake and a consolidated book gain of approximately EUR200 million. The buyers intend to place the acquired shares in the stock market. E.ON will then participate in the expected higher proceeds.
Purchase Price for VNG stake approximately EUR840 million
In addition, E.ON will sell 32.1 percent of its 42.1-percent stake in the Leipzig-based gas transmission company VNG to EWE. In accordance with the requirements stipulated in the ministerial permit, the remaining 10 percent were offered to East German municipalities for the same price. If the municipalities do not accept the offer, EWE will purchase these shares as well. The purchase price totals approximately EUR840 million. The book gain from the sale of the 5.3-percent stake originally held by E.ON Energie amounts to approximately EUR50 million. In accordance with US-GAAP rules, the 36.8-percent stake held via Ruhrgas was reported at its current fair value in the framework of the purchase price allocation following the acquisition of Ruhrgas. As a result, there is no book gain from the sale of this stake.
Both transactions are still subject to the fulfillment of certain conditions, including the approval by E.ON’s Supervisory Board.