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RWE acquires stake in Slovakian utility from innogy

RWE AG acquired innogy SE's 49% stake in Východoslovenská energetika Holding a.s., a Slovakian utility holding company based in Kosice.

The financial terms of the transaction were not disclosed. VSEH is engaged in electricity supply and distribution, according to an Aug. 21 news release from innogy. The remaining 51% stake of the company, which also supplies natural gas, is held by the government of Slovakia.

As the proceeds from the sale are recognized in the nonoperating result, this positive effect is not reflected in innogy's adjusted EBIT, the company said.

As a result of the deal, innogy revised downwards its adjusted EBIT outlook for 2019 from about €2.3 billion to about €2.2 billion. The adjusted EBIT outlook for its grid and infrastructure segment is now €1.65 billion to €1.75 billion, down from €1.7 billion to €1.8 billion.

The transaction is part of a €43 billion asset exchange deal under which E.ON SE will acquire RWE's majority stake in innogy and then purchasing the rest of innogy in a public takeover offer. E.ON is expected to acquire the stake in the Slovakian company from RWE in 2020, according to a separate Aug. 21 news release from RWE.