Eon Statkraft asset swap

15 October 2007

Power giant Eon and Norwegian utility Statkraft have signed a letter of intent for a multi-billion euro asset swap.

Eon will take over the 44.6% stake in Eon Sverige currently held by Statkraft – worth €4.4 billion, strengthening its position in the Nordic market as the sole shareholder of Eon Sverige.

In return, Statkraft will receive assets held by Eon in Sweden, Germany, the UK and Poland as well as more than 2% of Eon shares to compensate for the difference in value. Eon intends to use its own treasury shares for this purpose.

The deal is set to be finalised in the first half of 2008 but has not yet gained approval.

By purchasing the 44.6% interest held by Statkraft, Eon will gain full control of power plants with a total capacity of about 6400MW, 40% of which are nuclear power and around 28% hydroelectric. The remaining 32% are oil, gas and renewable energy.

In 2006 Eon Sverige supplied around 20% of power demand in Sweden and is the fourth largest power supplier in the Nordic market by generation capacity.

Statkraft is acquiring 934MW in Swedish hydroelectric plants and around 1.1GW in power plant capacity in Germany, Poland and the UK.

The preliminary agreement also includes electricity supply in excess of 100MW for ten years as well as a structured gas contract up to 100 million cubic metres for ten years.


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