Bond Dickinson advises RWE npower on £218m sale of two subsidiaries to Telecom Plus

Energy lawyers at national firm Bond Dickinson, which has offices in Newcastle and Tees Valley, have advised longstanding client RWE npower on the sale of two subsidiaries for £218 million.

The transaction, the sale of Electricity Plus and Gas Plus to Telecom Plus plc, the operator of the Utility Warehouse brand, is subject to both the approval of Telecom Plus shareholders and the OFT. Completion is expected in late December or early January.

As part of the deal, Telecom Plus will acquire contracts to supply gas and electricity to 770,000 accounts. The transaction also included the negotiation of a new 20-year wholesale supply arrangement with a bespoke collateral arrangement between Npower and the enlarged Telecom Plus group.

Bond Dickinson corporate finance partner, and RWE npower client partner, Simon Hewes led the team which advised RWE npower, alongside energy partner Chris Towner and banking partner Philip Withey.

They were assisted by a number of specialists including senior counsel David Harrison in relation to competition issues and Partner Andrew Kimble in relation to data protection issues.

Hewes comments: “We are delighted to have advised RWE npower on this high profile deal in the energy sector, mobilising a team of highly specialist lawyers. It will allow both RWE npower and Telecom Plus to offer the maximum number of tariffs imposed by Ofgem. It is a positive move for the energy industry, offering greater competition and increasing consumer choice of energy suppliers.”

RWE npower chief executive Paul Massara comments: “In one move we have helped to create the biggest independent competitor in Britain’s household energy supply market. Today’s announcement shows that Britain is well on the way to having a Big Seven rather than a Big Six. We are very grateful to the Bond Dickinson team for their help in seeing the deal through and have been impressed by the quality of their client service and their knowledge of the industry.”

The market has reacted favourably to news of the transaction with the Telecom Plus share price rising over 15% in early trading.