EVN AG — M&A Activity 2004

Oct 29, 2004

News Details

Ad-hoc | 29 October 2004 10:09

EVN purchases south-east Bulgarian power distribution companies

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– EVN purchases south-east Bulgarian power distribution companies Contractual signing took place in Sofia today Today, a contract for the purchase of a 67% holding in two regional, power distribution companies in south-eastern Bulgaria was signed by EVN AG. The purchase price amounts to EUR 271 million. The Plovdiv and Stara Zagora regional distribution companies dispose over a line network of 56,000 km and supply a total of 1.5 million customers with electrical power. With an area of over 42,000 km2, the companies’ supply region is roughly the size of Switzerland and together they provide 6,586 GWh of electricity to consumers annually. The city of Plovdiv is the second largest in Bulgaria and within its catchment area, has a population of around 500,000. The city is an important business and trade fair centre. By contrast, the Stara Zagora region offers the major potential derived from Black Sea tourism and the trading activities at the port of Burgas. Bulgaria’s macro-economic indicators permit the expectation of above-average growth opportunities and impetus. Since 1998, the Bulgarian economy has expanded by 4-5% annually and similar growth is anticipated for the coming years. Bulgaria is aiming for EU accession in 2007 and has already concluded negotiations for entry. EVN Chairman, Dr. Gruber, “Particularly in view of the major challenges in the infrastructure sector, apart from the electricity sector, an involvement in Bulgaria offers interesting perspectives in the gas and heating areas, and above all, in the water/wastewater and waste incineration segments. Following the acquisition in the last financial year of the WTE Group, which is active in the drinking water/wastewater sector in twelve CEE states, entry into the Bulgarian market represents a solid foothold in the energy business of this dynamic growth region.” Dependent upon the fulfilment of all conditions, the closing of the transaction and the payment of the purchase price are anticipated for this year. The Supervisory Boards of EDC Plovdiv and EDC Stara Zagora will both consist of five persons, three of whom will represent EVN. The Executive Boards of both companies will consist of three persons, all of whom will be nominated by EVN. Facts EDC Plovdiv/EDC Stara Zagora Supply area 42,163 km2 Distribution network 55,951 km Customers 1,496,000 Electricity sales to consumers 6,568 GWh end of ad-hoc-announcement (c)DGAP 29.10.2004 ——————————————————————————– WKN: 074105; ISIN: AT0000741053; Index: ATX Listed: Amtlicher Handel in Wien; Amtlicher Markt in Frankfurt (General Standard, WKN 878279) und München; Freiverkehr in Berlin-Bremen und Stuttgart 291009 Okt 04