EnBW to sells 25% stake in German TSO TransnetBW to Südwest Konsortium

EnBW Energie Baden-Württemberg has announced the sale of a 24.95% minority stake in German transmission system operator (TSO) TransnetBW to Südwest Konsortium for an undisclosed price.

Led by SV SparkassenVersicherung, the consortium includes over 30 banks, insurance companies, and corporations from Baden-Württemberg.

TransnetBW, as the transmission system operator, ensures a secure electricity supply for approximately eleven million people in the state of Baden-Württemberg. It is actively involved in constructing the necessary infrastructure for the energy transition by maintaining, optimizing, and expanding the electricity grid to meet future demands.

Covering an area of 34,600 square kilometers, the TransnetBW grid is accessible to all participants in the electricity market on fair and equal terms, ensuring energy provision for the entire population of Baden-Württemberg.

The sale process followed a multi-stage bidding process that adhered to clearly defined criteria in compliance with state aid regulations. Alongside the economic value of the purchase price and the financing commitment, EnBW also prioritized the reliability of the future partner.

Andreas Jahn — SV SparkassenVersicherung CEO said: “All members of our investor group see themselves as long-term financial partners of TransnetBW, who make a significant contribution to the expansion of the German energy infrastructure and want to contribute to the success of the energy transition.

“As an investment geared towards sustainability, the acquisition of shares in TransnetBW fits perfectly into the investment strategy of the members of the Südwest consortium.”

EnBW to sells 25% stake in German TSO TransnetBW to Südwest Konsortium

The transaction’s completion is contingent upon approval from relevant antitrust authorities, which is expected to occur during the third quarter.

With the signed transaction, EnBW has concluded a significant part of the partial sale process that was announced in February 2022.

Additionally, KfW has the option to acquire a second 24.95% minority stake, and the exercise of this option will be based on the market terms established in the sale process. Regardless, EnBW will retain its majority shareholder position in TransnetBW.

Thomas Kusterer — EnBW CFO said: “We are pleased to have found a long-term oriented and reliable partner for TransnetBW in the Südwest consortium, whose offer fully meets all of the criteria we defined in advance.

“At the same time, EnBW has additional funds available for growth investments in accelerating the implementation of the energy transition and the further expansion of our overall portfolio.”