E.ON SE

M&A Activity • Dec 8, 2003

News Details

Ad-hoc | 8 December 2003 13:00

E.ON sells stakes in EWE and VNG

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– 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 500 million euros in proceeds from the sale of its EWE stake and a consolidated book gain of approximately 200 million euros. 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 840 million euros 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 840 million euros. The book gain from the sale of the 5.3-percent stake originally held by E.ON Energie amounts to approximately 50 million euros. 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. end of ad-hoc-announcement (c)DGAP 08.12.2003 ——————————————————————————– WKN: 761440; ISIN: DE0007614406; Index: DAX, EURO STOXX 50 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; Eurex; Swiss Exchange; New York 081300 Dez 03