E.ON Transforms into European Company (Societas Europaea)

OREANDA-NEWS. May 4, 2012. E.ON AG is to become E.ON SE. Europe’s largest invest-owned energy company is going to be transformed into a European Company (Societas Europaea, or “SE”). The transformation was approved by a large majority of shareholders today at E.ON’s 2012 Annual Shareholders Meeting. Shareholders representing 99.67 percent of the company’s share capital voted for the transformation resolution proposed by the Supervisory Board and Board of Management.

The Board of Management and Supervisory Board had proposed this measure in order for the increasing internationalization of the company’s workforce, customers, and shareholders to be reflected in the form of its incorporation. Approximately half of E.ON’s employees, customers, and shareholders now reside in European countries other than Germany. In addition, the new form of incorporation will make it possible to manage the company more efficiently. Shareholders today also approved new Articles of Association and elected the first six shareholder representatives for the future SE. E.ON management has already conducted extensive discussions with employee representatives and trade unions in Germany in preparation for the transformation. Over the next six months, it will negotiate with employee representatives from all European countries to determine the main aspects of employee representation in the company. E.ON expects the transformation to take effect, and for E.ON SE to be fully functional, towards the end of this year. At that time, the employee representatives will be added to the Supervisory Board. Until then, the current Supervisory Board will continue to carry out its duties.

An SE is a stock corporation under EU law. This supranational form of incorporation symbolizes E.ON’s European and international alignment and therefore represents a decisive step in the development of a company like E.ON that operates globally. Shareholders of E.ON AG will automatically become shareholders of E.ON SE; the transformation will not affect shareholders rights or E.ON’s financial reporting.