• Enters Turkey’s attractive and growing energy market
• Forges strategic partnership with the Sabanc? Group
• Swaps stakes in hydroelectric stations near the
  Bavarian-Austrian border with Verbund AG

E.ON , Düsseldorf, and Austria’s Vienna-based Verbund AG
signed conclusive contracts for a substantial asset swap.
E.ON will acquire Verbund’s share of EnerjiSA, giving it
stakes in EnerjiSA’s power generation capacity and projects
and power distribution business in Turkey. In return, E.ON
will transfer its stakes in certain hydroelectric stations
in Bavaria to Verbund.

Under the transaction, which is expected to close in the
first quarter of 2013, E.ON will acquire 50 percent of
EnerjiSA A.?., giving it a superb starting position in
Turkey’s energy market. The other 50 percent are owned by
Sabanc? Holding, one of Turkey’s largest financial and
industrial conglomerates, which is majority owned by the
Sabanc? family. Turkey is one of E.ON’s target growth
regions outside its core markets in Europe. EnerjiSA’s
current generation portfolio consists of gas-fired, hydro,
and wind assets totaling nearly 1,700 megawatts of
installed capacity. The company has 2,000 megawatts of
capacity under construction and 1,500 megawatts under
development. EnerjiSA also operates a power distribution
business with about 3.5 million customers in the Ba?kent
region. E.ON and Sabanc? aim to have up to 8,000 megawatts
of generating capacity in Turkey by 2020, giving them at
least a 10-percent share of Turkey’s generation market.

“Following our entry into Brazil at the start of the year,
our entry into the Turkish energy market represents
significant progress in the implementation of our corporate
strategy. Turkey has one of the fastest-growing economies
in the world, and the rise in its energy demand has been
strong and steady. This transaction gives us a superb
platform for value-enhancing growth outside our markets in
Europe. In Sabanc?, we’ve found a partner that has unique
market knowledge and goals that are as ambitious as ours,”
E.ON SE Johannes Teyssen said.

In return, Verbund will acquire E.ON’s interest in hydro
capacity predominantly on the Inn River in Bavaria, in
which it is already a joint owner. Verbund will acquire
primarily E.ON’s stakes in Österreichisch-Bayerische
Wasserkraft AG (ÖBK), Donaukraftwerk Jochenstein AG (DKJ),
Grenzkraftwerke GmbH as well as Nussdorf,
Ering-Frauenstein, and Egglfing-Obernberg run-of-river
hydroelectric stations on the Inn along with procurement
rights from Zemm-Ziller Hydroelectric Group. Altogether,
these stakes and power stations represent 351 megawatts of
attributable generating capacity.

Even after the planned transfer, E.ON will still have 2,300
megawatts of hydro capacity in Germany and remains a
leading hydro operator there. After the asset swap is
completed, E.ON’s hydro capacity will total roughly 6,000
megawatts.

The transaction is subject to approval, in particular by
the European Commission, by Germany and Turkey’s antitrust
agencies, and by EMRA, Turkey’s energy regulator.