Karlsruhe. On 20 September 2010, EnBW Energie Baden-Württemberg AG acquired an overall shareholding of 69.6% in the Czech energy supplier Pražská energetika a.s. (PRE). This majority shareholding arose from the acquisition of a 41.1% share package from EPH Group. In return, EnBW sold its 24.3% shareholding in the Prague-based district heating supplier Prazská teplárenska a.s. (PT) to EPH Group. The difference in value of the two share packages was settled in cash.
The European Commission’s anti-trust authority and the Czech national anti-trust authority have reviewed this transaction and given green light.
Hans-Peter Villis, EnBW’s CEO says: “This share acquisition has enabled EnBW to build up an important majority shareholding outside Germany. This is a great success. We intend to join PRE in exploring prospects for the future and develop courses of action to make PRE even stronger and more successful on the Czech market. We intend to continue the existing successful partnership between PRE, the capital city of Prague and EnBW.”
As part of its strategy, EnBW is increasingly investing in foreign target markets. Before acquiring the majority shareholding in PRE, EnBW had formed a joint venture in Turkey in summer 2009. This joint venture will be used to expand generation capacities in Turkey over the next few years primarily in the field of renewable energies. In addition to the Czech Republic and Turkey, EnBW has equity investments in Hungary, Poland, Switzerland and Austria. However, EnBW is currently realigning its portfolio of investments, not only to strategic growth areas but is also reviewing the sale of individual non-strategic investments. For example, EnBW is currently using the announced capital increase at EVN AG to review the possibility of placing the EVN shares it holds on the market as part of a joint offering. EnBW currently holds 35.72% of the shares in EVN AG.
With around 730,000 customers, Prazská energetika a.s. (PRE) is the third largest electricity company in the Czech Republic, bringing together grid operations and sales in the capital city of Prague and the surrounding region. With more than 1,300 employees, PRE generated revenue of € 800 million, EBIT of € 107 million and unit sales of 6.5 TWh of electricity in 2009.
Prazská teplárenska a.s. (PT) is a district heating company and supplies some 250,000 households and industrial customers within the city of Prague using a district heating network of around 600 km in length. In 2009, the company generated revenue of around € 290 million and EBIT of € 30 million.
With some six million customers and more than 21,000 employees, EnBW Energie Baden-Württemberg AG is the third biggest energy company in Germany. In 2009, EnBW generated revenue in excess of € 15 billion. EnBW operates in the segments of electricity generation and trading, electricity grid and sales, gas and energy and environmental services.