E.ON SE (203 MW/Texas and 202 MW/Indiana wind portfolio) - Enbridge Inc. - E.

ON SE

Deal ID

539478

Announcement date

28/11/2014

Deal Value

Target

E.ON SE (203 MW/Texas and 202

MW/Indiana wind portfolio) (80% Stake)

Completion date

Pending

Deal nature Recommended

Bidder

Enbridge Inc.

Seller

E.ON SE

Deal types

GBP 329.8028 m

Acquisition, Cross border, Private,

Transatlantic

Enbridge Inc., the listed Canada-based energy transportation and distribution operator of crude oil and liquids pipeline system, has agreed to acquire an 80%
stake in a portfolio of two wind farms in the US of E.ON SE, the listed Germany-based electricity, oil and gas company, for a total consideration of USD 520m.
The two assets acquired are composed by Magic Valley 1, a 203 MW wind farm located in Harligen, Texas, and Wildcat 1, a 202 MW wind farm in Elwood,
Indiana, providing a combined energy service to 120,000 households. The transaction is in line with Enbridge's strategy to invest in renewable energy assets and
meet its neutral footprint commitment to generate KW hour for each additional KW consumed by its liquid pipelines business by 2015. Upon completion of the
transaction, Enbridge will have a total alternative energy generating capacity of more than 1,600 MW. Enbridge has invested around USD 3bn in renewable
energy assets during the last 5 years.
The transaction is subject to regulatory approvals.
Source links:
E.ON SE press release, 28 November 2014
Enbridge Inc. press release, 28 November 2014

Target

E.ON SE (203 MW/Texas and 202 MW/Indiana wind portfolio)

Description

US-based wind farms comprising Magic Valley 1 located near Harlingen, Texas, with a generation capacity of 203 MW, and Wildcat 1 located
near Elwood, Indiana, with a generation capacity of 202 MW

Sectors

Energy

Address

Texas (TX)
USA

Bidder

Enbridge Inc.

Description

Canada-based energy transportation and distribution operator of crude oil and liquids pipeline system

Sectors

Energy

Address

3000 Fifth Avenue Place

425 1st Street South West
Calgary
Alberta
Canada

Postcode

T2P 3L8

Telephone

+1 403 231 3900

Fax

+1 403 231 3920

Email

webmaster-corp@enbridge.com

Subsectors

Subsectors

Electrical power generation

Electrical power transmission
Alternative energy
Energy conservation related

Electrical power generation

Electrical power transmission
Alternative energy
Exploration and drilling services and equipment
Oil and gas exploration and production

Seller

E.ON SE

Description

Germany-based electricity, oil and gas company

Sectors

Chemicals and materials

Energy
Financial Services
Telecommunications: Carriers
Utilities (other)

Address

E ON-Platz 1
Duesseldorf
North Rhine-Westphalia
Germany

Postcode

40479

Telephone

+49 2 11 45790

Fax

+49 2 11 4579 501

Email

info@eon.com

Subsectors

Coal related
Electrical power generation
Electrical power transmission
Alternative energy
Energy conservation related
Integrated utilities
Oil and gas exploration and production
Water, sewage and other systems

Consideration Structure
Type

Value
GBP (m)

Source

Cash

330

Assumed cash. E.ON SE press release, 28

November 2014

Total

330

Financials
Deal Financials

Value
GBP (m)

Source

Implied Equity Value

412.25

E.ON SE press release, 28 November 2014

Net Debt

Not available

Enterprise Value

412.25

E.ON SE press release, 28 November 2014

Deal Value

329.8

E.ON SE press release, 28 November 2014

Reported
Target Financials
GBP (m)

Year 1

Revenue

EBITDA

EBIT

Earnings

Earnings Per Share

Exit Multiples

Year 1

Revenue

EBITDA

EBIT

Earnings

Source

Sector Analysis

Year 1

Total Production (boe/day)

Cost per boe/day of Production

Total Reserves (mmboe)
Cost per boe of Total Reserves
Total 1P Reserves (mmboe)
Cost per boe of Total 1p Reserves
Total 2P Reserves (mmboe)
Cost per boe of Total 2p Reserves
Total Electricity Output (GWh)
Cost per MWh of Electricity Output
Total Generation Capacity (MW)
Cost per KW of capacity

Source

Year 2

Source

Advisors
Role

Company

Credit%

Individuals

Level

Advisors to Bidder: Enbridge Inc.

Financial Advisor

None used

100

Lawyer

None used

100

Chief Executive Officer

Enbridge Inc.

100

Al Monaco

Level1

Chief Financial Officer

Enbridge Inc.

100

John K. Whelen

Level1

Chairman

Enbridge Inc.

100

David A Arledge

Level1

Financial Advisor

Bank of America Merrill Lynch

100

Chief Financial Officer

E.ON SE

100

Klaus Schafer

Level1

Chief Executive Officer

E.ON SE

100

Johannes Teyssen

Level1

Chairman

E.ON SE

100

Werner Wenning

Level1

Advisors to Seller: E.ON SE