Edison will no longer produce hydrocarbons. The newco Edison Exploration and Production (E&P), as well as all the investments of the energy company in the exploration and production of oil and natural gas, were sold 100% - as already anticipated on Wednesday by some press rumors - to the Greeks of Energean Oil and Gas, for a total value of almost one billion dollars. The operation was ratified by the board of directors on 3 July, chaired by the new president Marc Benayoun (who took office on 1 July in place of Jean-Bernard Lévy) and by the new managing director, the Italian Nicola Monti, who taken the very place left by Benayoun.
The price - reports a note from Edison - was determined on the basis of a enterprise value of $750 millionand an additional consideration of 100 million is expected upon start-up of production at the Cassiopea gas field in Italy. In addition, Edison has reserved the right to royalties associated with further potential developments in Egypt, which would bring the aggregate value close to 1 billion. The transaction, in which Edison was assisted by Rothschild and the Clifford Chance studio – also includes the transfer of future decommissioning obligations to the buyer. The company has made it clear that full maintenance of employment levels will be guaranteed in the transition to Energean.
Energean, a company of Greek origins but listed on the London stock exchange, had reached the final with Cairn Energy in the tender launched last year by Foro Buonaparte, and in the end won. Edison will therefore concentrate more and more on utility activities, i.e. on procurement, production and sale of electricity and gas, investing even more in renewable sources, and in energy and environmental services.
