EQS-Adhoc: EVN AG: EVN and STRABAG agree on key terms for the possible sale of WTE

The Management Board of EVN AG (EVN and, together with its consolidated subsidiaries, EVN Group) and the Management Board of STRABAG SE (STRABAG and, together with its consolidated subsidiaries, STRABAG Group) have just reached an agreement on key terms of a potential sale of all shares in WTE Wassertechnik GmbH (WTE), which bundles significant parts of EVN Group's international project business in the environmental sector, to STRABAG Group (the proposed transaction).

The proposed transaction is subject to an agreement on binding transaction documents, receipt of all necessary approvals, the consent of third parties and the fulfilment of customary conditions for completion, in particular merger control and investment control approvals. Signing of the transaction documents is envisaged for the end of February 2025.

The proposed transaction is expected to include significant parts of WTE's European business as well as its business activities in the Middle East. The projects in Budva, Zagreb and Prague, which have already been operationally completed, are excluded from the scope of the proposed transaction. With respect to the projects in Kuwait and Bahrain, which are still under construction and are yet to be completed, a significant part of the financing will remain with EVN, whereby the repayment would primarily be contingent upon the progress of construction and the completion of these projects. Furthermore, a significant part of the associated guarantees will remain with EVN. Conversely, going forward, EVN will continue to be entitled to participate in the results of the projects in Kuwait and Bahrain that are currently under construction.

The proposed transaction provides for a purchase price of EUR 100 million; no significant impact on EVN's results for the financial year 2024/2025 is expected. At the same time, EVN's risk profile in the environmental segment would be reduced going forward. The proposed transaction supports EVN's focus on its core business in line with the implementation of its Strategy 2030.

2048215  10-Dec-2024 CET/CEST