Gulf Oil and Gas accountACCOUNT

E.ON Sells Gazprom Stake

Source: www.gulfoilandgas.com 12/1/2010, Location: Asia

E.ON has sold the 3.5 percent stake in Gazprom held by its subsidiary E.ON Ruhrgas. E.ON reached an agreement to sell a 2.7 percent Gazprom stake to Vnesheconombank (VEB), Russiaís state-owned investment bank. The payment of the purchase price and the transfer of the stock to VEB are expected to take place in December 2010. The remaining 0.8 percent have already been sold in the market. E.ON proceeds from these transactions total Ä3.4 billion, resulting in a book gain of around Ä2.5 billion.

'The proceeds from the sale will take us a big step towards achieving our objective of generating roughly Ä15 billion through divestments and portfolio optimization by the end of 2013,' E.ON AG CEO Johannes Teyssen said. 'We will use these proceeds to further reduce our debt and to increase our flexibility for making new strategic investments. The sale of our Gazprom stake does not alter our Russia strategy. E.ON will remain an active investor in Russia in both power and gas. Our participation in power producer OGK-4 and in Yuzhno Russkoye gas field are examples of E.ONís very solid position in Russia.'

In 1998, Ruhrgas began acquiring Gazprom shares in stages and by 2003 held about 6.4 percent of the companyís equity. As part of E.ON Ruhrgasís acquisition of a stake in Yuzhno Russkoye gas field in Russia, Gazprom received from E.ON a share packet equal to 2.9 percent of its equity. This transaction reduced the Gazprom stake held by E.ON Ruhrgas to 3.5 percent.

'The purchase of Gazprom shares more than 10 years ago served to further solidify the partnership between Gazprom and Ruhrgas and to expand the two companiesí scope for collaboration. Since then, this partnership has been further intensified. Examples include our involvement in the Yuzhno Russkoye exploration project and the two companiesí participation in Nord Stream pipeline,' E.ON Ruhrgas AG CEO Klaus Schafer said. 'The sale will in no way alter the continued solid partnership between Gazprom and E.ON and E.ON Ruhrgas,' Schafer emphasized. 'In the future, we will continue to procure considerable amounts of Russian natural gas for the German and European markets and to work together closely on a number of joint projects in areas like innovative gas technology and natural-gas-powered vehicles.'

Acquisitions and Divestitures News in Russia >>

Austria >>  9/23/2020 - OMV and VERBUND reach agreement on transaction contract: VERBUND acquires 51% of shares Gas Connect Austria GmbH. The contract signing will take place...
Sweden >>  9/22/2020 - Inter Pipeline Ltd. announced that it has entered into a definitive agreement to divest a major portion of its European bulk liquid storage business t...

Australia >>  9/21/2020 - Comet Ridge Limited is excited to announce that the Company has been selected by the Queensland Government as preferred tenderer for two additional ga...
Brazil >>  9/21/2020 - Petrobras, in relation to the news published in the media, referring to the divestment of the Presidente Getķlio Vargas Refinery (Repar), clarifies th...

Norway >>  9/21/2020 - PGNiG Upstream Norway has signed an agreement with A/S Norske Shell to acquire interests in KvitebjÝrn and Valemon, two producing fields in the North ...
Norway >>  9/21/2020 - PGNiG Upstream Norway has signed an agreement with A/S Norske Shell to acquire interests in Kvitebjorn and Valemon, two producing fields in the North ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Russia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 |

More News

Related Links

AZ BD BN CN GE HK ID IN IR JP KH KR KZ MM MN MY PG PH PK RU SG TH TJ TM TW UA UZ VN
Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.