German energy company EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) has agreed to sell a 24.95% stake in its transmission system operator (TSO) TransnetBW to a consortium of banks and insurers, with the new investor expected to help finance planned grid development projects.
The buyer, Suedwest Konsortium Holding GmbH, has been selected in a multi-stage bidding process, EnBW said on Friday.
Financial details of the deal, which is still subject to antitrust clearance, have not been disclosed. According to information reported by German paper Handelsblatt, however, the price stands at about EUR 1 billion (USD 1.07bn).
The transaction provides EnBW with additional funds for growth investments to accelerate the implementation of the energy transition and to further expand its overall portfolio, CFO Thomas Kusterer noted in the statement.
EnBW first announced plans in 2022 to sell 49.9% of TransnetBW in two tranches, each consisting of 24.95%.
As the bidding process for the first stake has now been completed, German state-owned lender KfW can exercise an option in the coming weeks to buy the second stake at the same terms. In any event, EnBW will remain the majority owner of TransnetBW.
According to the statement, TransnetBW needs to invest about EUR 10 billion in grid development projects until 2035. The future shareholders will provide financing in proportion to their holding, EnBW said.
Suedwest Konsortium Holding GmbH is led by SV SparkassenVersicherung and consists of over 30 banks, insurance companies and corporations from the federal state of Baden-Wuerttemberg where TransnetBW's operations are focused.
(EUR 1 = USD 1.073)
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