Terms of trade in the draft agreement clarified

Reference is made to the stock exchange announcement of Friday 8 March 2019. Eidsiva Energi and Hafslund E-CO’s boards of directors have now reached an agreement on terms of trade in the draft agreement on the merger of the companies.

Should it go ahead, the transaction will result in the following:

  • Hafslund E-CO will become the owner of 50 per cent of Eidsiva Energi’s shares. The remaining 50 per cent will be held by Innlandet Energi Holding, a company which will be owned by Eidsiva Energi’s present owners.
  • Eidsiva Energi will become the owner of 100 per cent of the shares in a debt-free Hafslund Nett, which will join forces with Eidsiva Nett to form a new power grid company.
  • Eidsiva Vannkraft will be transferred debt-free to E-CO Energi and will become part of a jointly owned production company where Hafslund E-CO (through E-CO Energi Holding) will own 57,2 percent and Eidsiva 42,8 percent of the shares. Since Hafslund E-CO owns 50 percent of Eidsiva Energi, Hafslund E-CO?s total ownership share in the production company will be 78,6 percent. The jointly owned production company will have an annual normal production of about 14.9 TWh.
  • Hafslund E-CO’s power plant in Hafslund Produksjon Holding (HPH) is excluded from the transaction. HPH differs from the other power plants in the transaction in that they are in a special licensing position (no license). Hafslund E-CO’s ownership of 90 percent of the shares in these power plants (through E-CO Energi Holding) will therefore be continued. HPH has an annual normal production of about 3.4 TWh.

The negotiated text of the draft agreement is in line with the Letter of Intent that the parties signed in November 2018 and will be put to the companies? owners during the second quarter 2019.


E-CO Energi AS

Oslo, 14 March 2019

For further information, please contact:

Martin S. Lundby, Acting CFO Hafslund E-CO, tel: +47 416 14 448, e-mail: martin.lundby@hafslundeco.no

Per-Arne Torbjørnsdal, SVP Corporate communications and Public affairs, tel: +47 916 08 196, e-mail: Per-Arne.Torbjornsdal@hafslundeco.no

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