The German energy company RWE plans to increase its stake in Amprion and will therefore raise new capital to fund the acquisition by selling new shares worth up to EUR 4.1bn, according to an announcement on Monday.
This involves an indirect acquisition of 35% of the shares in Amprion, one of four German transmission system operators, through an agreement with five shareholders in M31, giving RWE a total ownership stake of 55%. The price for the shares is EUR 3.6bn.
At the same time, the German energy group announced that it is establishing its third business pillar, which also includes renewable energy and flexible power generation in the form of power plants that can quickly scale up or down electricity production.
RWE, which will increase its share capital by 10% to finance the acquisition, is also confirming its EUR 35bn investment plan in renewable energy, battery storage, and flexible power generation.
“We are expanding RWE’s portfolio to include power grid infrastructure. By increasing our stake in Amprion and providing additional financing for the expansion of Germany’s transmission grid, we are creating more attractive growth opportunities. This complements our existing investment plans in renewable energy, battery storage, and flexible generation. In doing so, we will make a significant contribution to the development of a robust and resilient energy system in Germany,” says Markus Krebber, CEO of RWE, in the press release.
“Once the announced capital increase is completed, the financing for the additional investments through 2031 will also be secured.”
Amprion owns and operates the high-voltage power grid in a large part of western and southern Germany, which is responsible for transporting electricity over long distances, including from wind and solar energy. Among other things, Amprion owns 11,000 kilometers of high-voltage cables and supplies electricity to 29 million Germans.
RWE’s US-listed shares fell 1.6% on Monday after gaining 0.9% in regular trading in Germany.
