Tenaris to Sell Participation in Dalmine Energie to E.ON
Tenaris S.A. has signed a letter of intent with E.ON Sales and Trading GmbH, an indirect subsidiary of E.ON AG, for the sale to E.ON of a 75% interest in Dalmine Energie, Tenaris's Italian energy supply business, for a purchase price of approximately EUR39 million (approximately US$50 million), subject to adjustments. The purchase price reflects an enterprise valuation for Dalmine Energie of approximately EUR72 million (approximately US$92 million). The transaction, which is subject to negotiation and execution of definitive documentation, clearance by the applicable competition authorities and customary due diligence conditions, is expected to close before the end of 2006.
Dalmine Energie began operations in 2000 following the partial deregulation of the Italian energy sector and initially supplied electricity to Tenaris's Dalmine seamless pipe mill and to other users in the north of Italy. Since then, it has grown rapidly and become a leading supplier of electric energy and natural gas to the Italian industrial and commercial market with sales (including sales to Tenaris) of approximately 3.0 TWh of electricity and almost 1.1 billion cubic meters of natural gas.
Tenaris is the leading global manufacturer and supplier of tubular products and services used in the drilling, completion and production of oil and gas and a leading supplier of tubular products and services used in process and power plants and in specialized industrial and automotive applications.
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Company: Tenaris SA more info
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