E.ON intends to swap assets with Statkraft and to take over 100 percent (1) of E.ON Sverige

  • Statkraft will become important shareholder in E.ON

Today, E.ON and Statkraft signed a Letter of Intent in Oslo for a multi-billion asset swap. According to the deal terms, E.ON will take over the 44.6 percent stake in E.ON Sverige currently held by Statkraft worth €4.4 billion and will thereby further strengthen its position in the Nordic market as the sole shareholder of E.ON Sverige. In return, Statkraft will receive assets held by E.ON in Sweden, Germany, the UK and Poland as well as more than 2 percent of E.ON shares to compensate the difference in value (2). E.ON intends to use its own treasury shares for this purpose. The deal is to be finalized as early as in the first half of 2008 and must be approved by the relevant authorities and the Board of Directors of the respective companies.

By purchasing the 44.6 percent interest held by Statkraft, E.ON has full control of power plants with a total capacity of about 6,400 MW, 40 percent of which are nuclear power and around 28 percent hydroelectric power. The remaining 32 percent are oil, gas and renewable energy. In 2006 E.ON Sverige covered around 20 percent of power demand in Sweden. E.ON Sverige is the fourth largest power supplier in the Nordic market by generation capacity. E.ON Sverige also operates in the gas business, heat generation and waste incineration.

Statkraft is acquiring 934 MW in Swedish hydroelectric plants and around 1.1 GW in power plant capacity in Germany, Poland and Great Britain. The preliminary agreement also includes electricity supply in excess of 100 MW for ten years as well as a structured gas contract up to 100 million m³ for ten years.

(1) minority shareholders of approx. 0,05% (2) Depending on the final asset valuations and the average E.ON share price during the 10 trading days prior to closing. 

E.ON AG E.ON-Platz 1 40479 Düsseldorf Deutschland / Germany ISIN: DE0007614406 (DAX) WKN: 761440 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; Eurex

- End of ad hoc announcement – October 12, 2007