EnBW in talks with key owners over $3.3 bln capital increase (updated)

EnBW Energie Baden Wuerttemberg AG

13/09/2024 13:21

(Adds details from paragraph 3)
       FRANKFURT, Sept 13 (Reuters) - EnBW  EBKG.DE  is in
talks with its major shareholders over a potential capital
increase of 3 billion euros ($3.3 billion) as a way of
shouldering what the utility expects are higher costs of
investing in Germany's energy transition, the company said.
    Any decision over a possible share issue will be up to the
group's shareholders at the annual general meeting, EnBW said in
a statement on Friday.
        EnBW, most of which is owned by the German state of
Baden-Wuerttemberg and local municipalities, said investments in
energy projects could rise to around 50 billion euros by 2030,
up from at least 40 billion expected previously.
  
        The group said this affected new wind and solar parks,
hydrogen-ready gas power plants, energy grid expansion as well
as the build-out of electric mobility.
  
        "This results in above-average capital requirements that
cannot be covered by operating income alone," EnBW said, adding
management was examining financing options "in view of the
historically high level of investment".
  
($1 = 0.9022 euros)

 (Reporting by Christoph Steitz; editing by Matthias Williams)
 ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))