Bloomberg News

Verbund Said to Reach Asset Swap Deal With E.ON in October

September 26, 2012

Verbund AG (VER), Austria’s biggest utility, and EON AG (EOAN) plan to sign a deal next month to swap power generation assets in Turkey and Germany, people familiar with the situation said.

EON, based in Dusseldorf, Germany, will take Verbund’s 50 percent stake in Enerjisa Enerji AS, a venture with Turkey’s Haci Omer Sabanci Holding AS (SAHOL), in exchange for several power plants in Germany, said the people who declined to be identified as the process isn’t public.

The agreement, set to be signed next month, may be a pure asset swap or include a limited cash payment, the people said.

Beate McGinn, a spokewoman for Vienna-based Verbund spokesman, declined to comment. EON’s Guido Knott also declined to comment.

EON wants to expand in Brazil and Turkey where energy demand is expected to grow faster than in Europe. The utility acquired an 11.7 percent stake of Brazilian billionaire Eike Batista’s MPX Energia SA (MPXE3) and set up a power-generation joint venture earlier this year. The two companies plan to jointly generate 20,000 megawatts in Brazil and Chile and will each own 50 percent of the business. EON abandoned plans to enter India.

Verbund, which bought a stake in the Turkish power business for $326.2 million in 2007, and Sabanci Holding have announced plans to have 5,000 megawatts of power capacity in Turkey BY 2105 and a 10 percent share in the power production market.

Enerjisa Enerji AS, Turkey’s second biggest non-state energy producer, was set up last year with a 3.5 billion lira ($1.95 billion) capital after a reorganization of businesses owned by Verbund and Sabanci Holding. Enerjisa, which had 3.7 billion liras of sales in 2011, has about 1,700 megawatts of generating capacity, through its production unit Enerjisa Enerji Uretim AS.

In a statement last year’s, the Enerjisa Enerji Uretim unit was valued at 8.64 billion liras and Enerjisa Elektrik Dagitim AS, which operates the power grid in Turkey’s capital Ankara, at 1.16 billion liras.

To contact the reporters on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net; Aaron Kirchfeld in London at akirchfeld@bloomberg.net; Tino Andresen in Dusseldorf at tandresen1@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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