Second tranche of TransnetBW partial sale to KfW
The federal government is acquiring a stake in transmission system operator TransnetBW. The state development bank KfW is taking over the second tranche of 24.95 percent, as announced by Energie Baden-Württemberg in Stuttgart on Friday. The purchase price was not disclosed. The state development bank had a right of first refusal.
Back in May, a consortium of more than 30 savings banks, banks, insurance companies and corporations had also purchased 24.95 percent of the transmission system operator TransnetBW. The utility was previously the sole owner of the company.
EnBW CFO Thomas Kusterer said: "We are delighted to welcome on board two long-term oriented and reliable co-investors for TransnetBW." At the same time, this would provide EnBW with additional funds for growth investments in the accelerated implementation of the Energiewende in Germany.
The Karlsruhe-based utility announced last year that it would sell two tranches of 24.95 percent each of its subsidiary. EnBW thus remains the majority shareholder of the company, which is responsible for an electricity grid covering around 34,600 square kilometers and operates one of four so-called transmission grids in Germany. These electricity highways will also be used to transport wind power from the north of Germany to the south, where energy-hungry industry is located.
The partial privatization was controversial. The SPD, for example, argued that critical infrastructure should remain in public hands. The Green Youth was of the opinion that the climate targets could be achieved more quickly if the state had shares in TransnetBW. The electricity price should also not rise as a result of the transaction. Minister President Winfried Kretschmann and Finance Minister Danyal Bayaz (both Greens), who sits on the EnBW Supervisory Board, had spoken out in favor of the deal.
The savings banks in the state are run by the local authorities. EnBW itself is also largely owned by the public sector: the state of Baden-Württemberg and the OEW association of nine Upper Swabian districts each hold almost 47 percent.
Completion of the transaction with KfW is still subject to approval by the relevant antitrust authorities. This is expected in November.
The acquisition of TransnetBW's second tranche by KfW implies a significant increase in electrical energy transmission, as this state-owned development bank specializes in financing projects related to energy and climate protection. Moreover, the involvement of banks in the purchase of TransnetBW shares signifies a shift towards private sector investment in managing and upgrading the country's power grid infrastructure.
Source: www.dpa.com
