North Brabant gives final approval to Essent takeover

28th May 2009, Comments 0 comments

The Dutch province has finally decided to sell its shares in the commercial part of Essent to Germany’s second biggest power company.

The Hague – The Netherlands' North Brabant province gave its final go-ahead Wednesday for Germany's second biggest power company, RWE, to take over Dutch power utility Essent.

"The provincial executive of North Brabant today decided unanimously to sell its shares in the commercial part of Essent to RWE," a statement said.

"The provincial executive took this decision after a long and careful analysis of the social, financial and legal considerations."

North Brabant was the single biggest shareholder in Essent with 30.8 percent of the capital.

Lawmakers in North Brabant's provincial council initially rejected the EUR-9.3-billion takeover bid in April but then approved it earlier in May after assurances on future investment in renewable energy.

The provincial executive met Wednesday to give the transaction the final green light.

The province said it would also retain a 30.8 percent share in Enexis, the company responsible for the development, maintenance and management of Essent's distribution grid.

Enexis was to split off from Essent as part of the RWE takeover deal.

"In this way, the government remains owner of the energy network and consumer access to energy provision is guaranteed," the statement said.

The Dutch ministry of economic affairs approved the split on Tuesday, concluding that the plan allowed for the emergence of two robust, independent and financially viable companies.

AFP / Expatica

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