VERBUND AG — M&A Activity 2001

Jul 5, 2001

News Details

Ad-hoc | 5 July 2001 11:36

Österreichische Elektrizitätswirtschafts AG

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Verbund, Austrias largest electricity generator, and Energie Steiermark (ESTAG), a provincial electricity company, pool their activities. The transaction comprises multi step restructuring asset swaps between the generation divisions (hydro and thermal power) and the distribution activities of the partners subsidiaries VERBUND-Austrian Hydro Power (AHP), VERBUND- Austrian Thermal Power (ATP), Steiermärkische Elektrizitäts-Aktiengesellschaft (STEG) and Steirische Wasserkraft- und Elektrizitäts-AG (STEWEAG). The objective is to create three individual subsidiaries to focus on hydro power generation (AHP), thermal power generation (ATP) and on the distribution of electricity in Styria (STEWEAG Steg GmbH). Strategically the transaction aims at the following: – Formation of the largest Austrian electricity company with a total supply of about 50.000 GWh – Pooling the thermal activities for optimal restructuring and operation planning – Pooling the distribution activities in Styria – Appearing concertedly on the Austrian market – Appearing jointly on the Slovenian and Croatian markets – Making use of synergy effects The transaction was approved by the supervisory boards of the two partner companies on July 4, 2001, and will be implemented quickly within the second half of 2001. end of ad hoc announcement (c) DGAP 05.07.2001 Issuer’s information/explanatory remarks concerning this ad hoc announcement: ESTAG and VERBUND pool their electricity activities Verbund, Austrias largest electricity generator, and Energie Steiermark (ESTAG), a provincial electricity company, pool their activities. The transaction comprises multi step restructuring asset swaps between the generation divisions (hydro and thermal power) and the distribution activities of the partners subsidiaries VERBIND-Austrian Hydro Power (AHP), VERBUND- Austrian Thermal Power (ATP), Steiermärkische Elektrizitäts-Aktiengesellschaft (STEG) and Steirische Wasserkraft- und Elektrizitäts-AG (STEWEAG). The objective is to create three individual subsidiaries to focus on hydro power generation (AHP), thermal power generation (ATP) and on the distribution of electricity in Styria (STEWEAG-Steg GmbH). Strategically the transaction aims at the following: – Formation of the largest Austrian electricity company with a total supply of approx. 50.000 GWh In the wake of the cooperation the hydro power plants of STEWEAG and STEG will be brought into AHP. As a consequence AHP will then have at its command a generating capacity of 21,600 gigawatt hours and a maximum capacity of 5,700 megawatts from 93 hydro power plants. Thus, AHP will strengthen its position in Europe as one of the most important hydro power generators of environment- friendly electricity. – Pooling the thermal activities for optimal restructuring and operation planning The thermal power plants of AHP, Draukraft and STEWEAG will be brought into ATP. ATP will then have at its disposal a generating capacity of about 1,800 megawatts. – Pooling the distribution activities in Styria The Styrian distribution activities will be pooled in the new company STEWEAG- Steg GmbH, to be founded shortly. The transaction complete, STEWEAG-Steg GmbH neu will supply approximately 500,000 customers with clean electricity from hydro power at competitive prices. – Appearing concertedly on the Austrian market Furthermore, the partners strive for a top position on the liberalized Austrian market in all customer segments by appearing concertedly on it and by making good use of their marketing know how. We are convinced that particularly business customers, but also smaller, privat customers, will appreciate highly competitive prices in addition to high security of supply and an environment- friendly way of generation. – Appearing jointly on the Slovenian and Croatian markets Verbund already now sell more than 50 % of its electricity abroad. In Germany, Italy, Poland and most recently in Slovenia distribution companies have been established. It is the objective to strengthen the partners activities abroad under the guidance of Verbund. – Making use of synergy effects Considerable synergy effects in the amount of approximately ATS 500 million per year can be achieved by the transaction. Shareholders equities of the companies affected can thereby be raised by about ATS 4.5 billion. The transaction was approved by the supervisory boards of the two partner companies on July 4, 2001, and will be implemented quickly within the second half of 2001. ——————————————————————————– WKN: 074640; Index: ATX Listed: Amtlicher Handel in Wien; Amtlicher Handel in Frankfurt; Freiverkehr in Berlin, Hamburg und Stuttgart 051136 Jul 01