RWE Dea, LetterOne agree on revised sale valued at €5 billion

RWE AG, Hamburg, and LetterOne Group, Luxembourg, have agreed to complete the sale of RWE Dea in its entirety by early March, at latest, for €5 billion based on current exchange rates.

RWE AG, Hamburg, and LetterOne Group, Luxembourg, have agreed to complete the sale of RWE Dea in its entirety by early March, at latest, for €5 billion based on current exchange rates.

The adjusted value is a decrease that “reflects developments relating to certain exploration and production licenses” from the €5.1 billion first reported in March 2014.

As part of the revised transaction, LetterOne will keep Dea UK separate from remaining RWE Dea activities for an unspecified number of years.

In the event sanctions on LetterOne or its owners are imposed, RWE will retain the obligation to repurchase the UK business during the first year following completion of the sale of RWE Dea. If triggered, this acquisition would be carried out on the basis of a predetermined purchase price formula to proceed with a subsequent marketing of the UK business to an independent third-party buyer.

“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,” commented Mikhail Fridman, LetterOne chairman. LetterOne is a privately owned global investment vehicle founded in 2013.

Closing of the transaction will now only be subject to approval of the RWE’s supervisory board and the absence of a “material adverse change in RWE Dea’s business.”

More in Companies