Ad hoc announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Verbund, Austrias largest hydro power generator, and E.ON-Energie, the largest
German hydro power generator, have agreed to merge their hydro power activities
under the leadership of Verbund
Verbund has reacted quickly to the challenges of the liberalised European
electricity market and has focused its strategy on the shareholder value
principle. Through cost cutting, streamlining and restructuring measures carried
out as a consequence of the market opening, the company is prepared for the
competition. Innovative distribution and sales schemes have brought significant
success on the domestic as well as on the foreign markets. Now Verbund takes
another important strategic step.
After merging certain business activities with Energie Steiermark AG (ESTAG) in
order to strengthen the competitiveness in Austria, Verbund now adds another
important step by merging its hydro power activities with those of E.ON-Energie,
one of the largest European utilities.
The merger will lead to the formation of the second largest hydro power
generator in Continental Europe with a production of 35 bn kwh of electricity in
more than 200 power plants with a maximum capacity of approx. 9.600 MW. The
newly founded company, European Hydro Power GmbH (EHP), will be under the
leadership of Verbund and will have its headquarter in Austria. According to
preliminary valuation, the shareholding in this company will be approx. 60 %
Verbund and 40 % E.ON-Energie.
The strategic goals of the merger are the following:
– low cost producer of environment-friendly energy in Europe
– strengthening of the competitiveness on the liberalised market
– achieving synergies due to the geographical vicinity of power plants
– increasing the enterprise values
As a result of this solution, Verbund will be able to fully consolidate EHP in
its financial accounts. The transaction will strengthen Verbunds earning
position as well as degear the company significantly.
In the long run, Verbund and E.ON-Energie are planning to develop joint market
oriented business activities regarding their trading businesses. In a first
step, a common shareholding in an European trading house in Berlin is intended
by the partners. Verbund is granted the option to make use of the distribution
know how of E.ON-Energie.
end of ad hoc announcement (c) DGAP 09.07.2001
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WKN: 074640; Index: ATX
Listed: Amtlicher Handel in Wien; Amtlicher Handel in Frankfurt;
Freiverkehr in Berlin, Hamburg und Stuttgart
091246 Jul 01