Karlsruhe. At today’s extraordinary general meeting of VNG, EnBW, which holds 74.21% of VNG, together with VNG’s other shareholders – VNG Verwaltungs- und Beteiligungsgesellschaft mbH (21.58%; VUB) and OEW Energie-Beteiligungs mbH (4.21%; OEW) – adopted a resolution to increase VNG’s equity by a total of €850 million in two steps. First, EnBW and OEW will pay in their share of the increase in proportion to their percentage shareholdings before the end of 2022.
As the second step, VUB has until 31 May 2023 to exercise, in whole or part, its subscription rights to further VNG shares for the purposes of the equity increase in proportion to its percentage shareholding. It will now launch a discussion and consultation process in this regard with its shareholders. If VUB does not exercise its subscription right in whole or in part, these rights would fall to EnBW and OEW after the cut-off date.
The equity increase is the last element in the long-term financial stabilisation of VNG, alongside the two settlement solutions on risks arising from gas procurement to replace discontinued Russian gas supplies with SEFE Securing Energy for Europe GmbH (see EnBW Investor News of 10 October 2022) and with the German government on the contract with Gazprom Export LLC (see EnBW Investor News of 2 December 2022). An equity increase became necessary after VNG’s equity was significantly depleted in recent months by the high cost of replacement procurement on trading markets. The equity increase will provide VNG with liquidity for its core business and investment funding for its ongoing transformation towards green gases. VNG thus continues to expand its biogas activities and is working on the ramp-up of the green hydrogen economy.