MVM Hungarian Electricity Private Limited Company signed the agreement governing the acquisition of E.ON’s Hungarian natural gas business units further to MVM’s General Assembly’s approval of the initialled contract.
The total agreed purchase price amounts to around EUR 870 million and includes E.ON Földgáz Storage Zrt.’s and E.ON Földgáz Trade Zrt.’s share capital valued at approximately EUR 350 million, as well as the assumption of all liabilities. The transaction is expected to close in the second half of 2013 following necessary approvals from relevant authorities. The final price will depend on the actual gas inventory levels at the closing date.
The acquisition includes 100% of the shares in E.ON Földgáz Storage Zrt. and E.ON Földgáz Trade Zrt., thus all of the companies’ assets will be transferred to MVM Group, including the working gas inventories of E.ON Földgáz Trade Zrt. and the cushion gas owned by E.ON Földgáz Storage Zrt. As part of the transaction, MVM Ltd will also redeem shareholder loans upon the transaction’s closing. MVM Ltd intends to finance the transaction from a combination of its existing funds and new external financing.
In addition to the acquisition of the two companies the agreement provides MVM with an option to buy E.ON Ruhrgas International GmbH’s stake in Panrusgáz Zrt. Through its long-term gas supply contracts E.ON Földgáz Trade Zrt. secures Hungarian customers’ gas demand from several different sources. Among the contracts it is of high importance the Russian long-term gas supply agreement.
[mappress] LNG World News Staff, April 02, 2013; Image: MVM