HomeWorld RegionsEuropeVattenfall to buy 37.2 % stake in German company HEW

Vattenfall to buy 37.2 % stake in German company HEW

Oct. 18, 2000à‚–Munich-based E.ON Energie and Sydkraft, the Swedish energy company headquartered in Malms, have agreed to sell their combined 37.2% stake (E.ON Energie: 15.4%; Sydkraft: 21.8%) in Hamburgische Electricitsts-Werke (HEW) to Vattenfall, Sweden’s Stockholm-based state-owned utility.

The Swedish state owned electricity utility already owns 26.2 percent of HEW but through Thursday’s deal with Sweden’s Sydkraft and Germany’s Eon Energie it will gain control of another 37 percent.

In exchange, E.ON Energie and Sydkraft will acquire a number of Vattenfall’s shareholdings in Norway, Sweden, the Czech Republic, and Lithuania plus roughly EU $490 million in cash.

The three companies’ Boards of Management today signed a memorandum of understanding on the deal. The final agreements will be worked out in the coming weeks. The agreements will also set the distribution of the Vattenfall shareholdings between E.ON Energie and Sydkraft.

The assets included in the deal are Vattenfall’s stakes in Hafslund (20.5%), a Norwegian generation, transmission, and distribution company, in Fredrikstad Energiverk (40%), in Fredrikstad Energinett (35%), in the Swedish generation company Forsmark Kraft (8%), in Forsmark Distribution (100%), in Vattenfall Naturgas (51%), in the operating company of the Baltic Cable (33.3%), in the Czech regional distributor VCE (41.7%), and in the Lithuanian energy utility LPC (10%).

E.ON Energie CEO Dr. Hans-Dieter Harig said: “Acquiring the Vattenfall shareholdings markedly strengthens E.ON Energie’s and its partner Sydkraft’s position in Scandinavia. The shareholdings in Eastern Europe also grant us additional access to these growth markets.”

VEBA and VIAG agreed to dispose of E.ON Energie’s HEW shareholdings as part of their E.ON merger negotiations with the EU Commission.

On Sept. 28, Vattenfall rejected proposals that it join forces with Southern Group of the U.S. to bid for Bewag, the Berlin electricity supplier.

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