Gazprom Acquisition of the Controlling Interest in South Stream Transport B.V.

Source Press Release
Company Gazprom PJSCEDFENI S.p.A.Wintershall Dea GmbH 
Tags Corporate Deals, Deals, Pipelines/ tankers/ distribution
Date December 29, 2014

(As per the Gazprom annaul report 2014) In December 2014 the Group became the owner of 100% of the interest in South Stream Transport B.V., the company responsible for the offshore part of the South Stream project. Until 29 December 2014, South Stream Transport B.V. was a joint project held by the Group (50%), ENI International B.V. (20%), EDF International S.A.S. (15%) and Wintershall Holding GmbH (15%). On 29 December 2014, the Group acquired the remaining 50% of the shares of South Stream Transport B.V. from the minority shareholders for consideration of Euro 883 million paid in cash. South Stream Transport B.V. was established for the planning, construction, and subsequent operation of the offshore pipeline through the Black Sea and had no notable operating activities up to and as of the purchase date other than the management of construction. Accordingly, this acquisition is outside the definition of business as defined in IFRS 3 “Business Combinations” and was considered by the Group as an acquisition of assets. The cost of the acquisition has been allocated based on the relative fair values of the assets (largely comprised of pipeline under construction), and liabilities acquired. Assets under construction in the amount of RR 127,778 are included in the line “acquisition of subsidiaries” as disclosed in Note 13. Capital expenditure commitments for the construction of the pipeline contracted as of 31 December 2014, but not yet incurred amounts to EUR 4.4 billion.

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