German Bank Buys Into 50Hertz

German state-owned bank, Kreditanstalt für Wiederaufbau (KfW), has agreed to acquire a 20% stake in compatriot transmission system operator 50Hertz Transmission GmbH.

Eurogrid International, the holding company of 50Hertz, is currently owned by the Belgian transmission system operator Elia (80%) and Australia’s IFM Global Infrastructure Fund.

Elia has now exercised its pre-emption right on the remaining 20% stake in Eurogrid International, which once acquired, will be sold to KfW at the same financial conditions.

”As a leading company in the energy sector, 50Hertz is very closely connected to the German society that it serves. Elia as main shareholder, looks forward to having KfW as our new partner and feels confident that this stronger national anchorage will inspire us to continue building the infrastructure to realise the energy transition in Germany,” Chris Peeters, CEO of Elia Group, said.

50Hertz is one of four electricity TSOs in Germany and is playing an important role in the implementation of the ‘Energiewende’ or energy transition in Germany, Elia said. The TSO is responsible for the construction and operation of offshore infrastructure which connects wind farms in the German Baltic Sea to the national grid.

The closing of all transactions is expected to be finalised in the third quarter of 2018. Citi acted as the financial advisor to Elia.