DONG and the City of Copenhagen have today signed an agreement on the expected acquisition of Copenhagen Energy's electricity activities
The agreement comprises approx. 400 employees in the following subsidiaries:
· KE Kunde (the PSO company)
· KE Marked (supplies to customers who have chosen supplier)
· KE Tele
· KE's electricity supply network
The agreement is conditional upon final approval by the Copenhagen politicians at a meeting of the City Council on 3 March 2005. The agreement is also subject to approval by DONG's Supervisory Board. A final acquisition of the companies is also subject to competition authority approval.
The total price for the electricity activities has been agreed at DKK 4.7 billion. This price excludes the shares in Energi E2.
At the same time, the City of Copenhagen and DONG have signed an agreement on acquisition by DONG of Copenhagen Energy's 34% shareholding in Energi E2 for DKK 5.8 billion. The acquisition of the stake in Energi E2 is subject to endorsement of the agreement by the company's other shareholders.
It applies to both agreements that one third of the purchase price can be paid in cash and the balance in cash, securities or a combination. The total purchase price is DKK 10.5 billion.
Copenhagen Energy will continue to supply heat, town gas and drainage to the Copenhagen public as well as drinking water to just over 1 million inhabitants in the metropolitan area.
DONG: Anders Eldrup, CEO, +45 4517 1550
City of Copenhagen:
· Lars Engberg, Lord Mayor - Jan Hulevad, Head of Media Relations, mobile +45 2629 0339
· Winnie Berndtson, Mayor of the Energy, Water and Environment Administration - Helle Fritze, Head of Communications, mobile +45 2615 5821