Corporate | 7 July 2004 09:02

EVN launches capital increase of up to 8.8% of share capital

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– The Management Board of EVN AG with the approval of the Supervisory Board has taken the decision to make use of its current authorised capital approved in the Company’s 70th AGM on 22nd January 1999 . The Federal Province of Lower Austria, 51% shareholder in EVN, has agreed to participate in the capital increase. This transaction aims to help EVN Group preserve its strong and leading position in the Austrian market across the whole value chain of electricity, gas, water and waste management, as well as enable its commitment to continue to pursue high-growth investment opportunities in Central and Eastern Europe, in order to deliver positive earnings growth and overall shareholder value. Transaction structure EVN AG is issuing up to 3.3 million new ordinary shares (representing up to 8.8 % of its existing share capital) in a combined offering which consists of a rights offering to existing shareholders (the “Rights Offering”) and a public offering to retail and institutional investors in Austria and an international private placement to institutional investors in Europe (the “International Offering”). The subscription period runs from 8 July until 22 July 2004, 12.00 noon, unless extended and the offer period runs from 8 July until 23 July 2004, 12.00 noon unless extended or shortened. The Rights Offering is being conducted at a ratio of 23:2, i.e. shareholders are entitled to 2 new shares for every 23 existing shares held. New shares not taken up by existing shareholders in the Rights Offering will be available for sale in the International Offering. The subscription and offer price in the Rights Offering and the International Offering will be the same and determined in a bookbuilding procedure, but will be set below or equal to a maximum price of EUR 51 per share. The final subscription and offer price is expected to be announced on or about 23 July 2004. Trading of the new shares in the prime market (ATX segment) of the Vienna Stock Exchange is expected to commence on or about 30 July 2004. Use of proceeds EVN will use part of the proceeds to finance pending and future acquisitions or direct investment opportunities in energy distribution in Central and Eastern Europe, and to provide equity for prospective water and waste treatment projects in Austria, as well as Central and Eastern Europe. Additionally, EVN intends to finance investment in thermal and renewable power generation capacity in Lower Austria and abroad. In particular, the company is looking to use part of the proceeds to provide its committed equity financing component to the water and waste treatment plants in Moscow, of around EUR80 million for the two projects. Joint Bookrunners Raiffeisen Centrobank and UBS Investment Bank are the Joint Bookrunners for this transaction. EVN Group EVN is an integrated energy and infrastructure company serving 1 million customer accounts in Lower Austria under a single service brand, as well as 4 million customers together with its strong Austrian regional partners in EnergieAllianz in one of the largest unified, fully liberalised electricity and gas sales areas in Central Europe. The historical core business of the group is in power generation, distribution and supply, as well as gas distribution and supply. EVN has developed a new, complementary area of focus through its water, wastewater and thermal waste incineration businesses areas in which the company’s footprint has been expanded to 11 European countries, following the acquisition of WTE Group in October 2003. EU enlargement has put EVN at the heart of Europe’s fastest growing region in which it has already built a successful track record through projects in Moscow, Zagreb, and other CEE areas. The company also maintains shareholder value-driven strategic investments in the electricity sector (e.g. Verbund, Energie AG, BEWAG) and the gas sector (e.g. RAG, EconGas, BEGAS). EVN’s strategic orientation EVN’s mid-term strategic direction is centred around the following main objectives: Focus on selected regional markets with potential for developing integrated electricity, gas, water and waste management solutions. The company will continue to pursue opportunities in the core energy business, through acquisitions or direct investment, in selected markets of Central and Eastern Europe such as Bulgaria, Croatia, Montenegro, Germany, Italy and Romania. EVN seeks to exploit the substantial growth potential in the water and waste treatment markets in Central and Eastern Europe. EVN intends to engage in project developments in Moscow city and region, Slovenia, Croatia, Bulgaria, Romania and the Baltic countries . EVN CEO Rudolf Gruber commented: “The EVN Group has highly specialised know-how in the infrastructure fields of energy, water and thermal waste treatment. With this capital increase, we are strengthening our position in order to pursue the growth potential in Austria and abroad.” end of message, (c)DGAP 07.07.2004 ——————————————————————————– 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 070902 Jul 04