RWE raises stake in power grid operator Amprion for $4.1 billion
RWE's Strategic Investment in Amprion
Deal Overview and Financial Details
FRANKFURT, June 22 (Reuters) - RWE has raised its stake in power grid operator Amprion to a majority for 3.6 billion euros ($4.11 billion), Germany's biggest power producer said on Monday, adding it would issue new shares to fund the deal.
Majority Stake Acquisition
The deal will give RWE a pro rata stake of 55% in Germany's second-largest high-voltage power grid operator, exposing the company to more regulated returns at a time when its capital allocation has drawn scrutiny from some investors.
CEO Statement
"We are expanding RWE's portfolio into grid infrastructure," CEO Markus Krebber said in a statement.
Growth Opportunities
"By increasing our stake in Amprion and providing additional funding for the expansion of Germany's transmission grid, we gain further attractive growth opportunities."
Funding and Shareholder Participation
RWE said the deal would be funded by issuing shares representing 10% of its share capital, adding Qatar, already the German group's single biggest shareholder, as well as Norges Bank had agreed to buy 1 billion euros worth of shares.
Market Reaction
Frankfurt-listed shares in the company were trading 2.3% lower at 1643 GMT.
Background and Industry Context
Sources had told Reuters in February that major owners of Amprion were considering selling stakes to new investors in the face of growing funding needs for energy networks across Europe.
Currency Exchange Rate
($1 = 0.8750 euros)
Reporting Credits
(Reporting by Christoph Steitz; editing by Tom Sims)
