E.ON adds to position in Hungarian power supply market

30 April 2002 – German energy group E.ON on Monday bought a majority stake in Edansz, the power supplier to Hungary’s main industrial region. E.ON acquired a 27.7 per cent holding from Electricité de France (EdF), which takes its total holding up to 55.4 per cent.

Under Hungarian stock exchange rules, E.ON is now compelled to make a public offer for the remaining shares.

E.ON already holds 92.4 per cent of Dedasz and Titasz, two other Hungarian power suppliers, and 31.2 per cent of Koegaz, a gas distributor.

The move further underlines E.ON’s interest in the Hungarian energy market and leaves the German group with control of three power suppliers and a minority stake in a gas supplier. An E.ON official said the group was attracted to Hungary because it was “a mature economy with a mature, liberalised energy sector”.

No figures were released concerning the transaction but an insider was reported as saying it was in the range of €42m ($61.2m) to €55m. This would value the share capital at up to €200m, considerably less than the $197m EdF paid for a 47.6 per cent stake in Edasz in 1995.

Edasz is headquartered in Gyor and its supply network covers Hungary’s main industrialised region bordering Austria, Slovakia and Slovenia. The group has 909 000 customers and made a net profit of €22m last year on sales of €409m

The transaction marks EdF’s exit from Edasz, although the group retains a 60.9 per cent stake in Demasz, another Hungarian power supplier. EdF said it agreed to the sale because it no longer wanted to be a minority partner in Edasz.

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