Ad hoc Announcement: E.ON to sell US Power and Gas Business to PPL Corporation
- Purchase price of approximately 7.6 billion US-Dollar
E.ON is to sell its power and gas business in the US to PPL Corporation, Allentown, Pennsylvania. The two companies signed contracts and agreed the purchase price of 7.6 Billion US-Dollar, a price that is very attractive for E.ON AG. With this disposal E.ON is already ahead of its target to realize at least 10 billion Euro from the divestment of assets by the end of 2010. Economic net debt will be reduced by 6 billion Euro due to the disposal. The transaction is subject to the approval of U.S. cartel and regulatory bodies, closing is expected for year end 2010. E.ON US will be treated as discontinued operations for the whole of 2010. This technically reduces Adjusted EBIT by approximately 400 million Euro and Adjusted Net Income by approximately 260 million Euro, but has no effect on net income attributable to shareholders. Accordingly there is also no change to the 2010 Adjusted EBIT and Adjusted Net Income outlook on a pro-forma basis. As part of the transaction, E.ON will record a goodwill impairment of approximately 0,9 billion Euro in the first quarter of 2010. This figure is based on the not finally ascertained and approved interim financial statement and might therefore be subject to change.
E.ON AG E.ON-Platz 1 40479 Düsseldorf Deutschland / Germany ISIN: DE000ENAG999 (DAX) WKN: 761440 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München and Stuttgart; Eurex – End of ad hoc announcement – April 29, 2010