Dutch court prohibits RWE takeover plans, Essent shareholders confused

Dutch court prohibits RWE takeover plans, Essent shareholders confusedAmsterdam  - Shareholders of Dutch energy utility Essent were left confused over a ruling by a court in Arnhem prohibiting the planned sale of a nuclear energy plant from Dutch Essent to German energy giant RWE, it was reported on Friday.

"We need to study the court's ruling," a spokeswoman for Essent shareholders told Dutch television. In January, RWE and Essent announced the German company would take over its Dutch counterpart.

Another company, Delta, subsequently instituted legal proceedings against Essent and RWE, who planned to include the nuclear energy plant in Borssele, in the southern Netherlands, in their takeover plans.

At present, Delta and Essent each own half of the nuclear energy plant, the only remaining one in the Netherlands. Their co-ownership contract stipulates that the plant's shares should always remain in government hands.

Delta claimed that this would no longer be the case if RWE were to buy Essent's half of the plant.

In their takeover plans, RWE and Essent said they would divide Essent ownership into legal and economic ownership. Essent would sell only its economic ownership to RWE while transferring its legal ownership to a separate venture.

But on Friday the court in Arnhem ruled this structure did not meet the conditions of government ownership for the plant in Borssele.

The court emphasized that given the public interest in energy availability, the government rather than private corporations should be responsible for it.

In initial reaction, Onno Hoes, representative of the provincial council of Noord-Brabant - Essent's biggest shareholder - in the southern Netherlands, said the takeover of Essent by RWE would continue nevertheless.

He said experts of both companies would "study" the court ruling and prepare a formal statement.(dpa)