Nuon and Swedish power utility Vattenfall have announced that they will form an European energy company. Vattenfall has made an all cash offer of E8.5 billion enterprise value for 100% of the shares, equaling E10.3 billion for the equity of Nuon’s production and supply company after 2008 dividends.
Nuon’s grid company Alliander is not included in the transaction. The partners have agreed that Vattenfall will initially acquire 49% of the shares. The remaining 51% of the shares will be acquired in the coming six years under fixed terms.
Following the initial acquisition of 49% Vattenfall will have operational control over Nuon. The step-by-step transfer of shares underlines the joint commitment of Nuon’s shareholders and Vattenfall to secure the public interests and Dutch identity of Nuon.
A foundation will be set up to monitor and safeguard the public interests served by Nuon. The management board and supervisory board of Nuon have unanimously recommended the offer to the Nuon shareholders. Subject to approval by the Nuon shareholders, the transaction is expected to close by the end of the second quarter of 2009. Nuon’s works council has advised positively on the partnership.
