Japanese consortium to buy Dutch utility Eneco
Post date: 27/11/2019 - 12:33
The shareholders' committee of Dutch utility Eneco Group and a consortium led by Mitsubishi Corporation have reached an agreement on the proposed sale of all shares in Eneco for a total equity value of €4.1 billion ($4.51 billion). Shareholders are 44 Dutch municipalities. Mitsubishi Corporation (80 percent) and Japanese third largest utility Chubu Electric Power Company (20 percent) will fund the proposed transaction fully by using existing cash resources. According to the company, Eneco will become the European centre for all energy-related activities of Mitsubishi Corporation and Chubu.
Eneco is a group of companies that is active in the energy sector, generating and supplying, beneath others, green energy to its customers. Installed capacity is currently 3.500 MW, including 2.100 MW wind and 294 MW PV. Mitsubishi plans to transfer part of its offshore wind activities (more than 400 MW) to Eneco, which remains intact as an integrated and independent Dutch energy company: the brands, its corporate culture and corporate identity remain unchanged, the employment and employment conditions remain unchanged, and the head office of Eneco remains in Rotterdam. Ruud Sondag will resign as CEO upon completion of the proposed transaction and will remain as senior adviser. He will be succeeded by a Dutch CEO.
The 44 municipal shareholders (largest shareholder with 31.69 percent is Rotterdam) will be given the opportunity to take a final decision on the sale of their shares in Eneco. It is expected that the process can be finalised before the summer of 2020.