E.ON sells minority stake in Swiss BKW
Options
E.ON sells minority stake in Swiss BKW
Additionally, further five per cent are sold to the Swiss energy provider Groupe E SA. In a second step, BKW is receiving a purchase option to acquire the remaining seven per cent until 30 September 2011.The volumes of the first two tranches amount to approximately 346 million Euros. E.ON will receive further 180 million Euros if the purchase option is exercised.
The sale of E.ON’s minority stake in BKW is part of E.ON’s ongoing portfolio review. The proceeds are used to reduce leverage and to further strengthen E.ON’s credit profile.
“The cooperation with BKW has developed well in the past few years and was financially successful. But alongside profitability, corporate freedom of action is important to us. This is limited, because the Canton Bern wants to hold the majority of the shares. Therefore we have decided to give up our shares,” explained E.ON Chief Financial Officer Marcus Schenck.