E.ON extra-high voltage grid definitively acquired by TenneT
25-02-2010
TenneT Holding and E.ON AG completed the sale of E.ON’s extra-high voltage grid today. All conditions have been fulfilled in completing the acquisition. In the takeover, TenneT has procured all shares in E.ON subsidiary transpower stromübertragungs gmbh (transpower), with effect from 31 December 2009.The agreed-upon value of the company amounts to EUR 885 million. The sale price as of 25 February 2010 is based on the net financial position of transpower on 31 December 2009, which was determined to be approx.EUR 1.1 billion. This sum includes transpower’s current liquid assets as of the reference date.
The sale of its extra-high voltage grid to TenneT means that E.ON has nearly fulfilled the agreements reached with the European Commission. Transpower stromübertragungs gmbh evolved from E.ON Netz GmbH in 2009 when the company was split into two separate entities in order to fulfil arrangements agreed upon with the European Commission. Management of the additional ca. 11,000 kilometre long extra-high voltage grid (220/380 kV) was transferred to transpower. It has three branches in Germany (in Bayreuth, Bamberg, Dachau and Lehrte), employing around 725 people.
The acquisition of E.ON’s extra-high voltage grid is financed through revenues from bonds issued by TenneT Holding in February 2010. TenneT is currently working on an integration plan in which the future structure and strategic aims of the new company will be established.
About TenneT
The acquisition of transpower stromübertragungs gmbh (transpower) is part of TenneT’s strategy to work on the creation of a north-west European electricity market and to assure the security of supply. The new company has 1700 employees, nine branches and approx. 20,000 kilometres of high-voltage connections, making it one of the top 5 electricity providers among transmission system operators in Europe. The new combination will deliver a range of benefits, including price equalization, improved grid balancing, insight into grid situations, and better possibilities for sustainable energy development in both countries.
About E.ON
With around 93,500 employees and an annual turnover of almost EUR 87 billion, E.ON is one of the largest private electricity and gas companies in the world. A customer base of 30 million makes E.ON a market leader in the core activity fields of electricity and natural gas. E.ON maintains a presence in over 30 energy markets around the world.
E.ON is active in the whole value added chain of energy. The company maintains an integrated business model in the markets for gas and electricity – from power stations and gas production to distribution and sale. With a well-balanced energy mix, which includes all methods involved in generating electricity, E.ON strives for reliable, environmentally friendly and affordable energy production.
