16 January 2015

Divestment of RWE Dea for an Enterprise Value of € 5.0 billion

RWE AG and LetterOne Group have agreed to complete the sale of RWE Dea in its entirety by early March 2015, at the latest.

  • Final agreement reached
  • Dea UK to be kept separate from other Dea activities by LetterOne Group
  • RWE Dea serves as growth platform for LetterOne Group

Essen/London, 16 January 2015 – RWE AG and LetterOne Group have agreed to complete the sale of RWE Dea in its entirety by early March 2015, at the latest. An enterprise value of c. € 5.0 billion based on current exchange rates has been agreed. The adjustment to the value communicated in March 2014 reflects developments relating to certain exploration and production licenses.

As part of the revised transaction LetterOne Group will keep Dea UK separate from the remaining RWE Dea activities for a number of years. In the unlikely event that sanctions on LetterOne or its owners were imposed, RWE will retain the obligation to re-purchase the UK business during the first year post completion of the sale of RWE Dea. If triggered, this acquisition would be carried out on the basis of a pre-determined purchase price formula in order to proceed with a subsequent on-sale of the UK business to an independent third party buyer.

Peter Terium, CEO of RWE AG: “The economics are attractive and therefore the Dea disposal remains an essential step towards executing our strategy and improving our financial strength. We are on track!”

Mikhail Fridman, Chairman of LetterOne Group: “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. We look forward to completing the transaction in the coming weeks.”

The closing of the transaction will now only be subject to the approval of the Supervisory Board of RWE AG and the non-occurrence of a material adverse change in RWE Dea’s business, as customary in transactions of this size.

Contact LetterOne

Alexander Styles
CNC – Communications & Network Consulting (UK) Ltd.
T +44 203 817 99 21
M +44 7823 550279
Alexander.Styles@cnc-communications.com

LetterOne

LetterOne is a privately owned Luxembourg-based global investment vehicle which was founded in 2013. It is focused on utilising its financial resources, management and investment expertise to make value-driven investments in the Energy and Technology sectors through L1 Energy and LetterOne Technology.

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