France'e EDF sells 4.7-billion-euro stake in German utility

6th December 2010, Comments 0 comments

The German state of Baden-Wuerttemberg said Monday it is buying a 45-percent stake in utilities group EnBW from France's Electricite de France (EDF) for 4.7 billion euros (6.3 billion dollars).

A company owned by the state, Neckarpri, said it has signed a contract with EDF to buy its shares for 41.50 euros each, an offer which it plans to make to all other shareholders in EnBW, who are mostly local authorities.

Energie Baden-Wuerttemberg (EnBW) is Germany's third-biggest utilities group with six million customers, 20,000 employers and sales last year of 15.5 billion euros. It is active in electricity, gas and related services.

Another 45-percent stake in the company is owned by a grouping of energy firms in southern Baden-Wuerttemberg known as the Zweckverband der Oberschwäbischen Elektrizitaetswerke (OEW).

EDF, which in 2009 generated sales of 66 billion euros, has owned the stake in EnBW for the past decade.

In Paris, EDF said it would use the funds raised from selling the EnBW to retire seven billion euros in debt.

© 2010 AFP

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