HAMBURG, Germany – RWE AG has agreed to complete the sale of its oil and gas E&P division RWE Dea to LetterOne Group by early March.
The two parties have agreed to an enterprise value of around €5 billion ($5.8 billion) based on current exchange rates. The adjustment to the value first communicated last March 2014 takes into account developments relating to certain exploration and production licenses.
LetterOne Group will keep Dea UK separate from the remainingRWE Dea activities for several years. But in case sanctions are imposed on the LetterOne or its Russian owners, RWE will retain the obligation to re-purchase the UK business during the first year after completion of the sale.
If triggered, this acquisition would be performed on the basis of a pre-determined purchase price formula in order to proceed with a subsequent sell-on of the UK business to an independent third-party buyer.