HNA/HNB - Letter of intent regarding sale of shares in Mjøskraft
The municipality of Gjøvik, the municipality of Østre Toten, Mjøskraft, Hafslund and Eidsiva energi are working to establish a platform for a potential integration of Mjøskraft and Eidsiva energi. Hafslund owns 54.22 % of the shares in Mjøskraft. The remaining shares are owned by the municipality of Gjøvik (28.45 %) and the municipality of Østre Toten (17.33 %).
A process towards a potential integration will include several steps. Based on an indicative offer from Eidsiva of just above NOK 500 million for Hafslund's shares, Eidsiva energi and Hafslund will proceed with negotiations. Subsequent to these negotiations the city councils of Gjøvik and Østre Toten will consider the results of the negotiations. A transaction will only be consummated if and when the city councils of Gjøvik and Østre Toten accept integration between Mjøskraft and Eidsiva energi. Eidsiva energi, Gjøvik and Østre Toten have a positive dialog regarding what solutions are best suited to serve the interests of the municipalities and the interests of the region.
For further information, please contact
CFO Christian Berg + 47 91 74 69 10.
Oslo, March 10, 2005