As part of the acquisition, ESB’s wholly-owned subsidiary will also acquire certain associated companies of NIE, including NIE Powerteam and Powerteam Electrical Services (UK), which provide electrical construction and maintenance services together with NIE, the NIE Group.
Under the terms of the share purchase agreement, ESB will pay GBP1,034m for the NIE Group subject to certain completion adjustments. ESB will also assume obligations of the NIE Group, including those under a GBP175m Eurobond. NIE’s regulated asset base as at March 31, 2010 was GBP1,007m.
The company said the completion of the transaction is subject to a number of conditions, including conditions relating to Irish and UK competition clearances and notifications and a refinancing of the existing indebtedness of the Viridian Group. Subject to fulfillment of the conditions, the transaction is expected to complete by the end of 2010.
Padraig McManus, chief executive of ESB, said: “ESB is fully committed to delivering the significant investment in Northern Ireland’s transmission and distribution networks that will be required to deliver our common energy sustainability policy objectives over the coming years and we believe that customers in Northern Ireland will benefit from this transaction in the longer term.”
Patrick Haren, chairman of Viridian Group, said: “The employees of the NIE Group can feel proud of recent achievements and we wish them well for the future. Under Arcapita’s ownership, the remaining Group will be focused on its very significant generation and supply activities.”
