Karlsruhe. The Management Board and Supervisory Board of Energie Baden-Württemberg Aktiengesellschaft have announced the details of a wide-ranging catalogue of measures to strengthen the company's equity base. In the first phase, around 12 million of the EnBW shares currently held by EnBW itself are to be offered to shareholders for purchase. Based on the planned purchase ratio of 18:1, one share in EnBW can be acquired for each 18 existing shares. As EnBW also intends to settle fractional rights, shareholders owning fewer than 18 shares may basically also purchase a share in EnBW. The purchase right will be rounded up to a full number of shares, with the result that a shareholder owning, for example, 19 shares will have the right to purchase 2 shares. Prof. Dr. Utz Claassen, CEO of EnBW: "This rounding up of fractional rights also reflects our basic philosophy of equal treatment for all our shareholders."
All in all, 12,261,746 own shares (plus any shares required for fractional rights settlement) will be offered at a purchase price of EUR 25.60. EnBW expects this transaction to boost its equity capital by around EUR 300 million. The purchase period will be from May 25, 2004 to June 8, 2004 (both dates inclusive). The two major EnBW shareholders, Electricité de France International (EDFI) and Zweckverband Oberschwäbische Elektrizitätswerke (OEW), have already indicated their support as well as their willingness to fully exercise their purchase rights. Further details of the offer will be published on May 22, 2004 in the purchase offer managed by Citigroup.
Prof. Dr. Utz Claassen: "The willingness of our major shareholders to fully utilise their purchase rights indicates their faith in the ongoing success of the consolidation and restructuring strategy at EnBW and is also underpinned by our meanwhile greatly improved earning potential as well as the resulting increase in the forecasting reliability and transparency of the company. The decision to consolidate our equity ratio was also made in response to the call of the rating agencies for an improved capital structure at EnBW."
In addition, the two major shareholders have undertaken to each make subordinate shareholder loans of EUR 175 million available with a duration of five years after the purchase offer has been implemented.