December 12, 2017

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LetterOne and BASF Sign Letter of Intent to Merge Their Oil and Gas Businesses to Create Wintershall DEA

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LONDON, December 7, 2017 /PRNewswire/ —

BASF and L1 Energy, the energy investment arm of LetterOne, announce their intention to merge their oil and gas subsidiaries   Wintershall DEA to be one of the largest independent European exploration and production companies   Wintershall DEA to be governed jointly by L1 Energy and BASF, with joint headquarters in Hamburg and Kassel  IPO envisaged in the medium term  Closing could be expected in the second half of 2018, subject to customary regulatory approvals, completion of due diligence process, and negotiation of definitive transaction agreements. There is no assurance that the intended transaction will be consummated. 

LetterOne announced today that it has signed a Letter of Intent with BASF to combine the parties’ oil and gas businesses in a joint venture. The new merged entity would operate under the name Wintershall DEA.

By combining these activities, the companies strive to create a sound footing for sustainable long-term growth, optimize the portfolio of the combined business, and realize synergies. Wintershall DEA would have significant growth potential and be one of the largest independent European exploration and production companies. In the medium term, L1 Energy and BASF intend to list Wintershall DEA through an IPO.

Wintershall DEA’s Chief Executive Officer will be determined by BASF, with the Deputy Chief Executive Officer being determined by L1 Energy. The company shall be headquartered jointly in Hamburg and Kassel.

Lord Browne, the Executive Chairman of L1 Energy and Chairman of the Supervisory Board of DEA, said: “Wintershall DEA will be one of Europe’s largest independent E&P Companies, with the scale needed to generate sustainable growth long into the future. We look forward to creating jointly with BASF a new company, with activities in new places, new perspectives and new prospects for the future”

In the coming months, L1 Energy and BASF will prepare and conduct a confirmatory due diligence process and negotiate definitive transaction agreements. Closing could be expected in the second half of 2018, subject to customary regulatory approvals. Until closing, DEA and Wintershall will continue to operate as independent companies. There is no assurance that LetterOne and BASF will enter into definitive transaction agreements or that the intended transaction will be consummated.

In order to form Wintershall DEA, it is intended that L1 Energy will contribute DEA into Wintershall against issuance of new shares to L1 Energy. Based on the

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