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MOL closes sale of gas subsidiaries to Germany's E.ON-Ruhrgas

MOL Hungarian Oil and Gas Company announced in a statement Friday that it has closed as of March 31 the sale of 100% stakes in its natural gas storage and natural gas wholesale subsidiaries to German energy concern E.ON-Ruhrgas International.

2006. április 3. hétfő, 07:00

"Final conditions of the transaction are identical with those announced on 13 January 2006," according to the MOL statement. The date of the closure is also in line with MOL's earlier announced timetable for the transaction.

MOL sold the 100% stakes in gas-storage division MOL Foldgaztarolo and gas-trading arm MOL Foldgazellato for a total purchase price of EUR 300 mln. In addition, E.ON-Ruhrgas is assuming the two gas companies' combined EUR 600 mln total debt toward MOL.

The transaction also includes a 50% stake in trading company Panrusgaz, MOL's joint venture with Russia's Gazprom. MOL is holding on to a 100% stake in its gas transmission subsidiary MOL Foldgazszallito.

"In line with its announced 2006–2010 strategy, MOL intends to utilize the capital released from the gas midstream businesses in its key upstream and downstream business segments, on value-creating investments to support the continued growth of the group," MOL said in its statement.

The closure comes 17 months after MOL announced in late 2004 it would sell parts of its natural gas operations to E.ON-Ruhrgas. The deal was finally approved by the European Commission last December after original conditions were amended in order to comply with EU competition and anti-monopoly directives.

NAPI Online
NAPI Online

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