French private equity group Ardian has become the new anchor shareholder of German EWE, the regional utility said on Friday, in a deal sources said was worth up to 1.4 billion euros ($1.5 billion).
Ardian, through its infrastructure arm, is buying a 26% stake in EWE as part of the deal, marking the end of an M&A process that was started when former anchor shareholder, German utility EnBW (EBKG.DE), decided to pull out four years ago.
Sources had told Reuters last month that Ardian was the leading bidder in the auction run by Citi (C.N), trumping a rival offer from a tie-up of Macquarie (MQG.AX) and Allianz (ALVG.DE).
“With Ardian, we will have a strategic growth partner with extensive experience in the pan-European infrastructure sector with thinking just as long-term, prudent and sustainable as ours,” EWE Chief Executive Stefan Dohler said in a statement.
The deal is expected to be approved by Germany’s cartel office in the first quarter of 2020, EWE said. No financial details were disclosed but sources previously said the offer was between 1.2-1.4 billion euros.
EWE said that once the transaction has closed, the two firms would work together to accelerate EWE’s growth, with a particular focus on investments in renewables, energy networks and telecommunications.
Source: Reuters
Can’t stop reading? Read more
Toyota’s $42bn bid to simplify empire draws private equity interest
Toyota’s $42bn bid to simplify empire draws private equity interest Toyota Chairman Akio Toyoda is...
Bain Capital and KPS circle Iveco’s €1.5bn defence unit as private equity interest in military assets surges
Bain Capital and KPS circle Iveco’s €1.5bn defence unit as private equity interest in military...
Capital Group and KKR win SEC nod for hybrid credit funds aimed at retail investors
Capital Group and KKR win SEC nod for hybrid credit funds aimed at retail investors Capital Group...