VERBUND AG — M&A Activity 2006

May 10, 2006

News Details

Ad-hoc | 10 May 2006 08:01

Österreichische Elektrizitätswirtschafts AG: OMV and Verbund create leading integrated energy group in Central Europe

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— – Creation of the leading energy group in the growth markets of Central Europe – Balanced portfolio of oil, gas and power diversifies risk profile and improves both sustainability and growth – Well positioned for opportunities created by continued integration and liberalization of European energy markets – Greater scale to enhance security of supply and facilitate capture of trading opportunities – Revenue and cost benefits of at least EUR 100 mn p.a. OMV, Central Europe’s leading oil and gas group and Verbund, Austria’s leading power provider, with wide-ranging activities across Europe, have signed an agreement to form a new energy group, with its head office in Vienna. The aim of the two companies is to merge as equal partners, in proportion to their market capitalisation (60/40). This will create the leading integrated energy group in Central Europe with profitable growth potential. The balanced portfolio of oil, gas and power assets which the new group will have diversifies the risk profile and improves both, sustainability and growth. OMV Verbund will be well-positioned to take advantage of the opportunities created by the continued integration and liberalisation of European energy markets. Furthermore the combination of the respective businesses will strengthen OMV’s position as a consolidating force along the European ‘growth belt’. The transaction is expected to close towards the end of 2006 – subject principally to the agreement of the Austrian parliament, OMV’s shareholders’ meeting and the relevant competition authorities. (c)DGAP 10.05.2006 ————————————————————————— Language: English Issuer: Österreichische Elektrizitätswirtschafts AG Am Hof 6A 1010 Wien Österreich Phone: 0043-1-53113-52616 Fax: 0043-1-53113-52694 email: andreas.wollein@verbund.at WWW: www.verbund.at ISIN: AT0000746409 WKN: 74640 indices: ATX Listed: Amtlicher Markt in Wiener Börse, Frankfurt (General Standard); Freiverkehr in Berlin-Bremen, Stuttgart End of News DGAP News-Service —————————————————————————