Vattenfall has today signed an agreement to sell its subsidiary 50Hertz Transmission GmbH, which owns and operates Vattenfall’s German transmission grid, to the Belgian transmission system operator Elia and to the Australian Industry Funds Management (IFM), one of the largest global infrastructure investment managers. Under the terms of the agreement IFM will own 40 per cent and Elia will own a 60 per cent stake and have operational control.
The agreed enterprise value amounts to EUR 810 million (circa SEK 8,000 million). The positive cash effect for Vattenfall will be roughly the same size. In addition, the transaction leads to positive cash flow effects due to the fact that the buyers are taking over the responsibility for carrying out the necessary investments in the transmission grid. These investments are estimated to amount to several billion Euro.
The transaction, which is estimated to be closed in the second quarter of 2010, is subject to approval from the EU’s competition authorities and the German federal Ministry of Economics and Technology (BMWi).
“We are very pleased to have found investors that fulfil all criteria that we have set for a sale; that they have a long-term focus, that they ensure substantial investments in network expansion and grant continued free access for all power generators, and promote the flow of electricity across national borders,” says Lars G. Josefsson, Vattenfall’s CEO.
Vattenfall discloses the information provided herein pursuant to the Swedish Securities Market Act.
A press conference will be held on Friday, March 12th, 2010 at 10:30h CET at the Radisson Blu Hotel in Berlin, Karl-Liebknecht-Straße 3, Germany. The press conference will also be accessible via webcast at http://www.thomson-webcast.net/de/dispatching/?event_id=d000ae59e30fb10d8006156e06853688&portal_id=209892703d17f855ce741246f89293fa&language=en.
Joint venture (PDF 62 kB)
For further information, please contact:
Mark Vadasz, Head of Group Media Relations, telephone +46 8 739 60 66, mobile +46 70 344 61 50.
From Vattenfall's Press Office, telephone: +46 8 739 50 10, email@example.com