RWE to Sell RWE DEA to Fridman for €5.1 billion

RWE entered into an agreement to sell RWE DEA to LetterOne Group at an enterprise value of ‘of some € 5.1 billion and on the major contractual conditions.’

‘The enterprise value includes ca. € 0.6 billion in assumed liabilities,’ reads a note released on Monday.

LetterOne Group, a Luxembourg based investment vehicle with a mandate to invest in the oil and gas sectors, is controlled by Russia’s fourth-richest man Mikhail Fridman and Ukrainian-Russian German Khan. Analysts considered Fridman the most likely buyer in the race for the second-biggest utility in Germany. Other potential buyers were Blackstone, Centrica, Wintershall and a consortium of America’s KKR with Kuwait’s Kufpec.

The deal is the first for the group, which was set up by the two businessmen after the sale of their stake in TNK-BP.

‘The transaction will be subject to the approval of the Supervisory Board of RWE and of authorities in several countries. It is expected to close later this year,’ explains the press release.