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E.On will invest 6 billion euros ($8.05 billion) for growth initiatives in Turkey, Russia and Southeastern Europe - 05 June 2007
05-06-2007 - TURKEY
Source :
Country from : Turkey
Activity :
Other or not specified |
According to Emmanuelle Rausch:
"As part of the company's plans E.On will invest 6 billion euros ($8.05 billion) for growth initiatives in Turkey, Russia and Southeastern Europe.
The company's Chief Executive Wulf Bernotat's said E.On intends to take part in the auction for Russian power generator OAO OGK-5, adding that a stake "could cost around 1 billion euros ($1.34 billion)." OGK-5's parent company, ROA Unified Energy Systems of Russia, is expected to auction off a 25.03-percent stake in the company next month.
The company, which failed in its 42.2 billion euro ($56.63 billion) bid to buy Spanish rival Endesa SA earlier this year, also said it would seek out new acquisitions with a focus on markets in France, Italy and Spain as part of a three-year plan that aims to increase its generating capacity by 50 percent.
E.On said it wants to "seize earnings and growth opportunities created by the integration of Europe's energy markets."
Duesseldorf-based E.On was thwarted in its attempt to buy Endesa after a takeover fight that saw Italy's Enel SpA and Spanish construction and energy conglomerate Acciona SA win out with a bid worth more than 43 billion euros ($57.71 billion).
However, Chief Financial Officer Marcus Schenck told reporters that E.On would keep an eye on the market for possible acquisitions, provided they would help drive its overall growth. He said that if a target was found, E.On would decide on how to pay for such a move, be it raising cash by selling part of its portfolio or taking on more debt.
Shares in E.On, one of Europe's biggest providers of electricity and natural gas, rose 4.2 percent to 122.30 euros ($164.34) after it unveiled the plan and announced the extension of Bernotat's contract by two years to 2010.
The company announced the major share buyback Wednesday night and put the price of the move at 7 billion euros ($9.39 billion). E.On also said it intends to spend as much as 60 billion euros ($80.52 billion) through 2010 to bolster its expansionary efforts, targeting not only western Europe, but eastern Europe as well.
Aside from traditional power plants, the company said it has earmarked 3 billion euros ($4.03 billion) for renewable energy, particularly new wind power plants. E.On plans to invest 10 billion euros ($13.42 billion) in its gas business with a focus on storage capacity expansion, exploration and transportation infrastructure, particularly the Baltic Sea pipeline and liquefied natural gas terminals in Wilhelmshaven and Krk." |
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