Viag AG said that it and Veba AG would shed units totalling annual sales of more than Euros 28 billion as part of their planned merger.
Viag Chief Executive Wilhelm Simson said in remarks prepared f…
Viag AG said that it and Veba AG would shed units totalling annual sales of more than Euros 28 billion as part of their planned merger. Viag Chief Executive Wilhelm Simson said in remarks prepared for a news conference that the merged group would use the proceeds from the sale to fund acquisitions in its core energy and chemicals divisions. “I am certain this will lend additional inspiration to our share price,” Simson said. Altogether nine divisions are up for sale. The units have combined earnings before interest taxes and amortisation of Euros 1.l4 billion. Included in the sale will be Veba“s 66% stake in logistics firm Stinnes, Viag“s 60% share in Schmalbach-Lubeca and its 71% in Gerresheimer Glas. Shares in the new firm are to be listed in New York, where Veba is already traded, in addition to Frankfurt. Veba Chief Financial Officer Michael Gaul said that the merger would cost about 2,500 jobs, with the lion“s share in electricity. Under US GAAP accounting standards, the deal will result in goodwill of about Euros 6 billion, Gaul said. Insurer Allianz AG will remain the largest shareholder in the group followed by the state of Bavaria. Viag said the two planned to hold shareholders meetings on the merger in February.