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Divestment of RWE Dea for an Enterprise Value of € 5 billion
Final agreement reached
Dea UK to be kept separate
from other Dea activities by LetterOne Group
RWE Dea serves as growth
platform for LetterOne Group
January 16, 2015
+ + + RWE AG and LetterOne Group have agreed to complete the
sale of RWE Dea in its entirety by early March 2015, at the latest. An
enterprise value of ca. € 5 billion based on current exchange rates has
been agreed. The adjustment to the value communicated in March 2014
reflects developments relating to certain exploration and production
licenses.
As part of the revised transaction LetterOne
Group will keep Dea UK separate from the remaining RWE Dea activities for
a number of years. In the unlikely event that sanctions on LetterOne or
its owners were imposed, RWE will retain the obligation to re-purchase the
UK business during the first year post completion of the sale of RWE Dea.
If triggered, this acquisition would be carried out on the basis of a
pre-determined purchase price formula in order to proceed with a
subsequent on-sale of the UK business to an independent third party buyer.
Peter Terium, CEO of RWE AG: “The economics are
attractive and therefore the Dea disposal remains an essential step
towards executing our strategy and improving our financial strength. We
are on track!”
Mikhail Fridman, Chairman of LetterOne Group:
“We are pleased to have reached a final agreement with RWE. Dea is a
strategic transaction for LetterOne and will serve as a platform for
further growth in the industry. We look forward to completing the
transaction in the coming weeks.”
The closing of the
transaction will now only be subject to the approval of the Supervisory
Board of RWE AG and the non-occurrence of a material adverse change in RWE
Dea’s business, as customary in transactions of this size.
Source: RWE AG -
www.rwe.com
+ + +
About LetterOne Group
LetterOne is a privately owned Luxembourg-based
global investment vehicle which was founded in 2013. It is focused on
utilising its financial resources, management and investment expertise to
make value-driven investments in the Energy and Telecoms sectors through
L1 Energy and LetterOne Telecom.
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