Norway's Statkraft AS signs LoI with E.ON AG for share swap

Nordic Business Report, Oct 12, 2007

NORDIC BUSINESS REPORT-12 October 2007-Norway's Statkraft AS signs LoI with E.ON AG for share swap(C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com

Norwegian state-owned energy group Statkraft AS said on Friday (12 October) that it has signed a Letter of Intent (LoI) with E.ON AG to swap Statkraft's shares in E.ON Sverige AB (44.6%) in exchange for flexible power production assets and shares in E.ON AG.

The two companies will proceed with the intention of swapping Statkraft's current shareholding in E.ON Sverige AB with 1/3 of E.ON Sverige's hydropower assets, shares in E.ON AG and flexible gas power, hydropower and district heating assets in Europe, mainly in Germany.

E.ON Sverige is today owned 55.3% by E.ON and 44.6% by Statkraft.

The total value of the asset swap is EUR4.4bn, the company said.

The deal is expected to be completed in the second or third quarter of 2008.

Statkraft, headquartered in Oslo, Norway, is the Nordic region's third largest electricity generator and Europe's second largest producer of renewable energy.

One British pound (GBP) is worth approximately 1.45 euros (EUR).

((Comments on this story may be sent to nbr.feedback@nordicbusinessreport.com))