German electric utility company EnBW Energie Baden-Württemberg has wrapped up the previously announced sale of a 24.95% stake in its transmission grid operating subsidiary TransnetBW to Südwest Konsortium.
The financial terms of the deal remained to be undisclosed.
Südwest Konsortium is a consortium led by insurance group SV SparkassenVersicherung. It is made up of more than 30 banks, insurance companies, and corporations from the German state of Baden-Württemberg.
When announcing the deal, EnBW said that German state-owned development bank KfW holds an option to buy a second minority stake of 24.95% in TransnetBW. That option has been exercised now by KfW, which has been commissioned by the German government to acquire the stake.
The second minority stake will be acquired on the same market terms established by EnBW in the sale process of its subsidiary. Last year, EnBW announced plans to secure a long-term investment partner for a minority stake of up to 49.9% in TransnetBW.
TransnetBW is among the four electricity transmission system operators in Germany. The company is engaged in supplying electricity to approximately 11 million people in Baden-Württemberg.
Its grid is said to serve an area spanning 34,600km².
EnBW CFO Thomas Kusterer said: “We are delighted to welcome two long-term oriented and reliable co-investors on board at TransnetBW. At the same time, this provides EnBW with additional funding for growth investments to accelerate the implementation of the energy transition in Germany.”
Having entered into the deal with KfW, EnBW has now concluded the steps involved in the partial sale of TransnetBW. EnBW will retain its status as the majority shareholder in the transmission system operator.
EnBW system critical infrastructure COO and TransnetBW supervisory board chairman Dirk Güsewell said: “EnBW has fully embraced its responsibility for the transmission grid from the very beginning of the sale process. This is part of our basic philosophy as a reliable and sustainable infrastructure partner for the state, municipalities and our customers.
“TransnetBW is of outstanding importance for security of supply in Germany.”
The deal, which is contingent on the approval of the relevant antitrust authorities, is anticipated to close this month.
