EWE stake sale to see indicative offers on 11 June as bidders line up
The sale of a 26% stake in German energy company EWE is to see first-round bids on 11 June, two sources familiar with the situation said.
Parties intending to place bids include a consortium of Deutsche Bank’s [ETR:DBK] DWS [ETR:DWS] and Dutch pension fund PGGM, both sources and a third familiar with the matter added.
Swiss Life Asset Managers has also teamed up with an undisclosed partner to place a bid, the first source said. KKR [NYSE:KKR] has looked at the auction too, this source added.
DWS, EWE, KKR and PGGM declined to comment. Swiss Life did not respond to requests for comment.
OMERS Infrastructure, advised by Goldman Sachs, is expected to bid; Ardian Infrastructure and IFM Investors, which are considering bidding separately for the stake, are also in the running, this news service’s sister publication Inframation reported in March.
Allianz Capital Partners and Macquarie, advised by Morgan Stanley and Macquarie Capital, are believed to have joined forces for the stake in the German energy distribution and telecommunications giant, as per Inframation.
EWE announced in March that interested parties had until 21 March to register their interest with sellside adviser Citi.
Based on a valuation calculated at the time of EWE's asset swap with EnBW [ETR:EBK] in 2016, the 26% stake could have an equity value of up to EUR 1.5bn, according to a previous Mergermarket report.
EWE is selling the 10% stake it holds in itself, while regional municipalities Weser-Ems-Energiebeteiligungen and Energieverband Elbe-Weser Beteiligungsholding are collectively selling 16% of the business.
EWE supplies 1.4 million people with electricity and around 1.8 million people with natural gas through its 207,000km in energy distribution and supply networks. The business also supplies 850,000 customers with telecommunications and IT services in north western Germany. EWE also has operations in Poland, largely related to gas distribution and sales.
The business has said that it aims to invest in fibreoptic broadband expansion across the north west of Germany this year.
In October 2015, EnBW and EWE agreed to a restructuring of their shareholdings that saw EnBW acquire a 74.2% stake in VNG from EWE. In return, EnBW sold its 26% holding in EWE, to EWE itself and EWE-Verband. The deal concluded in 2Q16.