April 3 (Renewables Now) - German energy companies EnBW (ETR:EBK) and RheinEnergie AG have agreed to offload their combined 45.1% stake in MVV Energie AG (ETR:MVV1), a Mannheim-based sector player that bets on renewables.
The buyer in this transaction is asset manager First State Investments, which will become MVV’s largest minority investor. The controlling shareholder remains the City of Mannheim, which continues to hold a stake of 50.1%.
EnBW is parting with a 28.8% shareholding, while RheinEnergie sells off a 16.3% stake.
EnBW’s CFO Thomas Kusterer commented that the company is exiting MVV “at an attractive price.” The transaction is pending clearance by the competent supervisory and competition authorities.
First State, through its unit FS DE Energy GmbH, will make a public takeover offer for the remaining MVV shares, as required by the German takeover law. However, MVV’s two major shareholders “share the joint interest of preferably maintaining a free-float in the current scope,” the announcement says.
Niall Mills, partner responsible for infrastructure investments at First State, said that MVV’s new investor will help the energy company continue its transition to renewables and fully supports its objective of becoming climate-neutral by 2050 at the latest.
According to MVV's financial report for the fiscal first quarter ended December 31, 2019, the company had 481 MW of installed renewable energy capacity.
“Our shareholding in MVV was ultimately a financial investment. We will now place our strategic more than ever on expanding our energy sector partnerships in the Rhineland region and our renewable energy activities, reinforcing our infrastructure and building new business areas,” meanwhile stated Dieter Steinkamp, CEO of RheinEnergie.