LetterOne completes acquisition of RWE oil and gas assets
Energy investor LetterOne Group has completed the acquisition of RWE’s oil-and-gas arm, RWE Dea, an international oil and gas company headquartered in Hamburg.
In January, both parties had announced their plans to complete the transaction at the beginning of this month. The agreed enterprise value is approximately €5.1 billion (US$5.7 million) based on current exchange rates. Due to exchange rate fluctuations, this is slightly higher than the amount agreed on when the sale was announced in January.
As of 2014, RWE Dea owns stakes in about 190 oil and gas licenses in 14 countries. The company also operates natural gas underground storage facilities in Germany.
In 2013, RWE put Dea for sale. Wintershall, a consortium of KKR & Co. and Kufpec, and LetterOne made their bids. In March 2014 it was announced that Dea would be bought byLetterOne. On August 22, 2014 Germany's economy ministry approved the sale to the Russian investor.
Peter Terium, CEO of RWE AG, stated:
'The sale of RWE Dea demonstrates that even in difficult conditions, we continue to realize our plans. Both parties negotiated good value for money, and RWE can now focus fully on its core business."
He continued by saying that the transaction was not only an important milestone for the RWE Group but that it was beneficial for all involved – including Dea and its workforce. He added:
"Dea gets a new owner who wants to invest long term in the oil and gas production business and will guide the company into a positive future."
Mikhail Fridman, Chairman of LetterOne:
We have recently reported about several oil and gas projects globally:"We are delighted to have completed the acquisition of Dea. We now look forward to working with Dea’s management and staff. Our ambition is to develop and grow Dea. We are convinced that the current macroeconomic environment and the low oil price, give us an opportunity to achieve our ambition."
