💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 1-RWE to pay 950 mln euros less for Essent

Published 09/02/2009, 06:04 PM
Updated 09/02/2009, 06:06 PM

* Amended deal excludes disputed nuclear power plant

* Essent's stake in nuclear plant to stay public-owned (Adds spokesman's comments, details, background)

By Aaron Gray-Block

AMSTERDAM, Sept 2 (Reuters) - Germany's RWE has agreed to pay 950 million euros less to acquire the production and delivery assets of Dutch utility Essent in an amended deal excluding the nuclear power plant Borssele, Essent said..

RWE agreed to buy Essent for 8.2 billion euros in January in a deal that included Essent's 50 percent stake in the nuclear power plant, but a Dutch court ruled in July RWE could not acquire that stake because it had to remain in public hands. The enterprise value of the deal (including debt) was 9.3 billion euros.

Essent spokesman Jeroen Brouwers said on Wednesday the two companies had now agreed to exclude the power plant from the deal and that RWE will pay 950 million euros less, confirming an earlier report in Dutch daily Het Financieele Dagblad.

"We have found a solution for the nuclear power plant Borssele. For the time being, our 50 pct stake is not part of the deal," Brouwers said.

Brouwers said RWE and Essent had proposed the new deal to a shareholders' committee, which had agreed to recommend the amended terms to Essent's shareholders, Dutch provinces and city councils.

Onno Hoes, chairman of the Essent shareholders' commission, told the Dutch newspaper the amendment was "not material" and would not have to be voted on by Essent's shareholders.

But he added a period of 15 work days had been agreed on for shareholders to discuss the deal.

The nuclear power plant is part owned by Dutch utility Delta, which has opposed the transfer of Essent's 50 percent stake to RWE arguing that statutes governing the partnership between Essent and Delta stipulated it could not be sold to a listed company.

A Dutch court upheld the statutes in a preliminary ruling in July. [ID:nLA536633]

"We have appealed against the court ruling, but a ruling could take up to six years," Essent's Brouwers said.

It has now been agreed that Essent's stake in Borssele, the Netherlands' only operating nuclear power plant, will be placed in a new company which will stay under ownership of Essent's current shareholders.

RWE and Essent expect to be able to close the deal on Oct. 1, Brouwers said. (Editing by Carol Bishopric)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.