VERBUND AG — M&A Activity 2012

Dec 3, 2012

News Details

Ad-hoc | 3 December 2012 21:00

VERBUND AG: VERBUND and E.ON reach agreement on asset swap

VERBUND AG / Key word(s): Disposal/Strategic Company Decision

03.12.2012 21:00

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VERBUND, Austria's leading utility, and E.ON, one of the world's largest
energy providers, have reached an agreement on an asset swap including the
acquisition of German hydropower capacities and the sale of VERBUND's
equity interest in the Turkish company Enerjisa Enerji A.S. Contracts were
signed today, Monday, December 3, 2012.

As part of the transaction, VERBUND will sell its 50% interest in Enerjisa
Enerji A.S. to E.ON and, in return, will acquire E.ON's interest in eight
run-of-river power plants in Germany with average pro rata annual
generation of over 2 TWh. Prior to the transaction, VERBUND has already
held interests in the acquired run-of-river power plants as well as
electricity purchase rights. Once the transaction is completed, VERBUND
will own 100% of these power plants. In detail, VERBUND will acquire the
following assets:

• the sections of the Ering, Egglfing and Nußdorf hydropower plants
  located in Germany with a pro rata generation of 592 GWh

• the 50% share in the Österreich-Bayerische Kraftwerke AG ('ÖBK') with a
  pro rata generation of 994 GWh

• the 50% share in Donaukraftwerk Jochenstein AG ('DKJ') with a pro rata
  generation of 425 GWh

• the 50% share in Grenzkraftwerke GmbH ('GKW'), which operates the ÖBK
  and DKJ power plants

As a part of the transaction, VERBUND will also repurchase 20.3% of the
capacity of the Zemm-Ziller power plant group (237 GWh). This is equivalent
to 60% of the electricity purchase rights of 33.8% agreed with E.ON in
2009. In addition, VERBUND will purchase the 50% interests from E.ON of the
existing hydropower plant projects Freilassing basin (approx. 18 MW),
Tittmoning basin (approx. 18 MW) and Riedl energy storage plant (300 MW).

The closing of the transaction is planned for quarter 1/2013 and is subject
to regulatory approval including authorization under anti-trust law.

With this transaction, VERBUND reinforces its position in Germany, its most
important international market, and in its core technology hydropower
generation.

In addition, VERBUND improves its risk profile as well as the structure of
its balance sheet, and increases its strategic flexibility given the
ongoing challenging backdrop to both the energy sector and the overall
economy. By selling its interest in the joint venture Enerjisa, VERBUND
will realize a significant appreciation in the value of its investment in
Turkey. By purchasing additional hydropower capacity, VERBUND is acquiring
renewable electricity generation owned 100% by VERBUND which will generate
immediate cash returns.

This transaction underscores VERBUND's strategy of expanding its position
as a leading renewable electricity company in Europe. The focus for future
investments will also be on VERBUND's core markets of Austria and Germany.
In contrast, Italy and France are no longer considered to be strategic
growth markets. South-Eastern Europe offers interesting potential for
future growth opportunities in the medium term.

Contact:
Andreas Wollein
Head of Group Finance and Investor Relations
T.: +43 (0)5 03 13 - 52604
F.: +43 (0)5 03 13 - 52694
mailto:investor@verbund.com

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Language: English
Company: VERBUND AG
Am Hof 6A
1010 Wien
Austria
Phone: 0043-1-53113-52616
Fax: 0043-1-53113-52694
E-mail: investor@verbund.com
Internet: www.verbund.com
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Wien (Amtlicher Handel / Official Market)

End of Announcement DGAP News-Service

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