RWE Consolidates and Streamlines Business in the Czech Republic
-Sales and gas distribution business to be bundled in one entity each
-Macquarie European Infrastructure Fund 4 (MEIF4) to become co-shareholder in new RWE Grid Holding
Today, RWE has taken an important step towards consolidating its activities in the Czech Republic. To that end, RWE will create two separate units for sales and the gas distribution business. This is the key step to reorganise the RWE companies on the Czech market into a structure of effective units for sales, grid, generation and storage business under the ownership and governance of RWE Ceská republika.
RWE and a group of Macquarie-managed funds, including MEIF4, have agreed on a transaction which will lead to a simplified ownership structure of RWE’s activities in the Czech Republic. The group of Macquarie-managed funds will acquire E.ON’s, SPP’s and GDF SUEZ’ present shareholdings in RWE’s regional gas companies VCP, SMP and JMP. The Macquarie-managed funds will swap the acquired minority stakes against a ca. 35% stake in RWE Grid Holding. RWE Grid Holding bundles RWE’s Czech gas distribution activities, RWE Gasnet, VCP Net, SMP Net, JMP Net and the asset service company RWE Distribucní služby. In addition, the consideration for RWE will comprise a cash component.
Dr. Rolf Martin Schmitz, Deputy Chief Executive Officer of Executive Board of RWE AG: “This is a key step to streamline and further develop our business activities in the Czech Republic. It enables us to run our business in this important market more efficiently and even more successfully. We are also delighted to have gained with Macquarie an experienced infrastructure investor as a partner to further develop RWE Grid Holding”.
The transaction will enable RWE to bundle sales activities on the Czech market, currently operated through five companies, into one single entity under full RWE governance. The transaction is subject – amongst other customary conditions – to the approval by the relevant competition authorities and is expected to be completed in the 1st quarter 2013.
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