Swedish State confirms Vattenfall’s Lignite Divestment
Vattenfall submitted the proposal to sell Vattenfall’s lignite operations to a Czech consortium formed by EPH, an established European energy group, and its financial partner PPF Investments, which is an international finance and investment group focused on Central and Eastern Europe and Asia, to its owner, the Swedish State.
After having reviewed the proposal, the owner has now confirmed that it stands behind the divestment.
The deal is expected to be closed on August 31, 2016. It is subject to merger clearance by the European Commission.
As we reported in mid April, the sale includes all of Vattenfall’s lignite assets in Germany. Those are power plants Jänschwalde, Boxberg, Schwarze Pumpe and Vattenfall’s 50 percent stake in Lippendorf, as well as the open cast mines Jänschwalde, Nochten, Welzow-Süd and Reichwalde, and the recently closed mine Cottbus Nord.
The buyer will take over the lignite business, with all its assets, liabilities and provisions. The assets include cash amounting to a total of US$1.8 billion. The liabilities and provisions, including re-cultivation obligations, amount to a total of US$2.2billion.
