E.ON SE

M&A Activity • Oct 12, 2007

News Details

Ad-hoc | 12 October 2007 11:30

E.ON AG: Asset swap with Statkraft

E.ON AG / Letter of Intent

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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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.

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Information and Explaination of the Issuer to this News:

This Ad-hoc-annoucement may contain forward-looking statements based on
current assumptions and forecasts made by E.ON Group management. Various
known and unknown risks, uncertainties and other factors could lead to
material differences between the actual future results, financial
situation, development or performance of the company and the estimates
given here. These factors include those discussed in our public reports
filed with the Frankfurt Stock Exchange and with the U.S. Securities and
Exchange Commission (including our Annual Report on Form 20-F, in
particular to the discussion included in the sections entitled 'Item 3. Key
Information: Risk Factors', 'Item 5. Operating and Financial Review and
Prospects', 'Item 11. Quantitative and Qualitative Disclosures about Market
Risk'). The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or
developments.
12.10.2007 Financial News transmitted by DGAP

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Language: English
Issuer: E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Deutschland
Phone: +49 (0)211 4579-0
Fax: +49 (0)211 45 79-5 01
E-mail: investorrelations@eon.com
Internet: www.eon.com
ISIN: DE0007614406
WKN: 761440
Indices: DAX, EURO STOXX 50
Listed: Amtlicher Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Stuttgart, München, Hamburg;
Terminbörse EUREX; Foreign Exchange(s) Mailand

End of News DGAP News-Service

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