EnBW sells Polish assets to EdF
German energy supplier EnBW said on Wednesday it had agreed to sell its shareholdings in two Polish power plants to French giant EdF for 301 million euros ($395 million).
Under the terms of the deal, EdF -- which was EnBW's majority shareholder until February this year -- will acquire the German company's 32.45-percent stake in a coal-fired power station in Rybnik in southern Poland and a 15.59-percent holding in the Kogeneracja combined heat and power plant in Wroclaw.
The sale, which was still subject to antitrust approval, was part of a drive to divest business operations "that are no longer strategically relevant and outside out international target markets," EnBW said.
The divestment "will reinforce our financial strength and provide us with important financial headroom to allow us to increase our investment in the new energy concept," said chief executive Hans-Peter Villis.
In a bid to cut carbon emissions, EnBW is investing heavily in the expansion of renewable energies and modernising its power plants.
With the acquisition, EdF will raise its stakes in the Rybnik power plant to 97.34 percent and in Kogeneracja to 50 percent plus one share, the French giant said in a separate statement.
"This acquisition will allow EdF to pursue its strategy of development and integration in Poland ... opening up 3.0-5.0 million euros in new operational synergies each year."
© 2011 AFP