Stockholm, March 12, 2010 — Vattenfall signed an agreement to sell its unit 50Hertz Transmission GmbH, which owns and operates Vattenfall’s German transmission grid.
Under the terms of the agreement IFM will own 40 percent and Elia will own a 60 percent stake and have operational control.
The agreed enterprise value amounts to $1.1 billion. The positive cash effect for Vattenfall will be roughly the same size.
In addition, the transaction leads to positive cash flow effects due to the fact that the buyers are taking over the responsibility for carrying out the necessary investments in the transmission grid.
The transaction, which will be closed in the second quarter of 2010, is subject to approval from the EU’s competition authorities and the German federal Ministry of Economics and Technology.
“We are very pleased to have found investors that fulfill all criteria that we have set for a sale; that they have a long-term focus, that they ensure substantial investments in network expansion and grant continued free access for all power generators, and promote the flow of electricity across national borders,” says Lars G. Josefsson, Vattenfall’s CEO.