German energy group RWE is to acquire a majority stake in electricity transmission grid operator Amprion and is raising fresh capital on the stock market to fund the deal, the company announced after the close of trading on Wednesday.
The purchase price for increasing RWE's stake in Amprion to 55% is around €3.6 billion ($4.08 billion), the company said.
RWE has reached agreements with shareholders of the M31 investment company to acquire their indirect stake in Amprion, which would bring RWE's indirect holding in the German grid operator to 55%. The necessary funds are to be raised through a capital increase.
To that end, RWE plans to place up to just under 74.4 million shares exclusively with institutional investors, issuing new shares equivalent to up to 4.9% of its share capital against cash contributions.
In addition, RWE intends to sell treasury shares equivalent to up to 5.1% of its share capital. The company plans to exclude existing shareholders' subscription rights in both cases.
RWE aims to complete the increase in its Amprion stake by the end of September.
The current co-owner M31 represents a consortium of pension funds and institutional financial investors from the insurance sector.
RWE already holds the remaining 25.1% of Amprion through a joint venture with financial investor Apollo.
