MVV Energie's buy of 50.1% in Juwi to conclude in mid-Dec - report

Dec 4, 2014 - German utility MVV Energie AG’s (ETR:MVV1) acquisition of a 50.1% stake in wind and solar developer Juwi AG is planned to close on December 15, according to FINANCE Magazin.

In mid-October the target unveiled the deal, without disclosing financial and organisational details. FINANCE said today on its website, citing market sources, that the transaction with MVV would bring some EUR 100 million (USD 123m) in fresh capital for Juwi.

When announcing the acquisition agreement, Juwi said that the move will “strengthen and enhance its core business of project development, construction and operations & maintenance”. According to FINANCE, finding a new investor has been very urgent as Juwi is said to have been close to imminent insolvency.

In July the solar and wind project developer said it intends to axe 400 jobs as part of a restructuring driven by the changing conditions on the German energy market. At the time it said it would also look for an external investor to beef up the company’s equity ratio.

Once MVV takes the majority stake in Juwi, co-founders Fred Jung and Matthias Willenbacher will own the remaining 49.9%.

(EUR 1.0 = USD 1.231)

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