RWE Agrees Pacts With WestLB For Potential Elmu Stake Buy

RWE Agrees Pacts With WestLB For Potential Elmu Stake Buy
Πεμ, 10 Ιανουαρίου 2008 - 03:49
German utility RWE AG (RWE.XE) said it has entered options agreements with German bank WestLB AG over the acquisition of a stake in Hungarian power distributor Budapest Elektromos Muvek Nyrt. (ELMU.BU), or Elmu, equivalent in size to a stake in the firm that the city of Budapest plans to sell.

Elmu and WestLB have concluded a call option agreement granting RWE the right to buy - and a put option granting WestLB the right to sell - 640,122 ordinary shares in Elmu, RWE said late Wednesday in a filing to the Budapest Stock Exchange.

The city of Budapest is seeking a buyer for 640,122 shares in Elmu, with the deadline for bids Thursday, online Hungarian news agency portfolio.hu said Wednesday after obtaining documents for the invitation-only tender. The city of Budapest plans to sign a sales contract with the bid winner Friday, it added.

RWE already owns 55.3% of Elmu, with German utility EnBW Energie Baden-Wuerttemberg AG (EBK.XE) holding a further 27.3% and the city of Budapest's stake being equal to 10.5%.

EnBW Wednesday said it won't take part in the bidding process for the 10.5% stake in Elmu.

The 640,122 shares on offer are worth 19.14 billion forints ($110.7 million), according to Dow Jones Newswires calculations.

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