EnBW Sells 1.1 Billion Dollars Worth Of TransnetBW Minority Stake

(CTN News) – On Friday, German utility EnBW announced that it had sold around a quarter of its high-voltage transmission grid TransnetBW to a consortium led by a savings bank for around 1 billion euros ($1.1 billion).

Despite the recent rise in interest rates, TransnetBW’s minority stake will be valued at around 4 billion euros as a whole, pointing to the continued attraction of regulated power grids even with the sale of the minority stake.

A 1.6% increase in EnBW’s shares was reported.

According to the company, Suedwest Konsortium Holding GmbH purchased a 24.95% stake in the company from SV Sparkassen Versicherung. The consortium includes more than 30 banks, insurance companies and companies located in the German state of Baden-Württemberg, which owns the company.

TransnetBW, which announced plans last year to partially divest its business, expects that the deal will be approved by regulatory authorities during the third quarter of the current year, adding that it would remain the majority owner of the subsidiary.

In my opinion, this is a historic decision by EnBW, and I see it as a decision that will set the course for the next century,” said Peter Schneider, chair of the Savings Bank Association of Baden-Wuerttemberg, the German state where EnBW is based.

The Russian war of aggression against Ukraine has brought to light for all of us the importance of ensuring a secure energy supply, one of the most important components of which is the electricity transmission grid.

In addition, the German state lender KfW also has the option to acquire a 24.95% stake in TransnetBW, and it is EnBW’s understanding that this option can be exercised in the coming weeks on the same terms as before.

According to sources who spoke with Reuters in February, EnBW KfW plans to exercise its option in the upcoming months.

With Germany planning to take over the local division of Dutch grid operator TenneT, Berlin is also looking to take a stake in TransnetBW. This reflects broader concerns about the ownership structure of critical energy infrastructures.

($1 is equal to 0.9084 euros)

In the following report, Christoph Steitz reports, Linda Pasquini writes, Matthias Williams edits, Kirsten Donovan writes; and Karsten Donovan reports.

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